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It was based on interviews with industry and consumers, and it highlights areas which many across the industry have been talking more and more about:
For us, it seems that consumers are (or would) increasingly value more holistic advice. Holistic financial advice that demonstrates to the consumer an understanding by the adviser and/or product provider of the multitude of financial needs and goals the consumer may have over various time horizons throughout their lifetime; the financial behaviour they could (or should) undertake, and the decisions they will need to make.
Often, the industry shies away from this sort of advice because it is not easy, it requires significant investment and more nuanced consumer conversations with limited (or no) tangible commercial payback. What we do see more often than not is advice (if it is given at all) dispensed with the goal of getting people to purchase “x” product.
While New Zealanders' investable assets continue to grow, from a product and product-differentiation perspective, for some products, it appears to be very much a ‘red ocean’. Perhaps those advisors and product providers who are willing to provide their consumers with genuine and broader holistic advice will win in the longer term by building that ‘loved one’ type loyalty that resonates deeper, or at least equal to ‘red ocean’ type features of investment performance and fees/costs.
Fortunately, as technological advancements march on, the opportunity to provide broader, more holistic advice could be getting easier for those willing to try (and for consumers who are willing to buy). It appears the FMA is keen to support where possible as well.
Investing in solid people, process and technology is important for any advice business looking to scale efficiently, and safely. This will remain true regardless of the tact taken.
It was based on interviews with industry and consumers, and it highlights areas which many across the industry have been talking more and more about:
For us, it seems that consumers are (or would) increasingly value more holistic advice. Holistic financial advice that demonstrates to the consumer an understanding by the adviser and/or product provider of the multitude of financial needs and goals the consumer may have over various time horizons throughout their lifetime; the financial behaviour they could (or should) undertake, and the decisions they will need to make.
Often, the industry shies away from this sort of advice because it is not easy, it requires significant investment and more nuanced consumer conversations with limited (or no) tangible commercial payback. What we do see more often than not is advice (if it is given at all) dispensed with the goal of getting people to purchase “x” product.
While New Zealanders' investable assets continue to grow, from a product and product-differentiation perspective, for some products, it appears to be very much a ‘red ocean’. Perhaps those advisors and product providers who are willing to provide their consumers with genuine and broader holistic advice will win in the longer term by building that ‘loved one’ type loyalty that resonates deeper, or at least equal to ‘red ocean’ type features of investment performance and fees/costs.
Fortunately, as technological advancements march on, the opportunity to provide broader, more holistic advice could be getting easier for those willing to try (and for consumers who are willing to buy). It appears the FMA is keen to support where possible as well.
Investing in solid people, process and technology is important for any advice business looking to scale efficiently, and safely. This will remain true regardless of the tact taken.
