What can we learn from IFAs overseas?

In November last year, I was a keynote speaker at the Asia Pacific Financial Planning Conference in Singapore. 

There, I met hundreds of financial advisers that are passionate about engaging with the investing public across Singapore, Malaysia, India, Australia and New Zealand.  The audience was approximately 50/50 tied/independent, with the latter deemed to be the preferred course to take.  (And don't expect them to restrict their activities to the Region.  Several told me that they intend to build a presence in the UK over the coming years.)

The Asia Pacific financial planning industry is developing rapidly, and opportunity abounds for local IFAs – spurred on by the government.

For example, Deputy Prime Minister and Chairman of the Monetary Authority of Singapore – Mr Lee Hsien Loong said in a parliamentary address on 16 October 2003:

“In this new and changing environment, Singaporeans need to become more self-reliant in their financial affairs.  They must acquire the knowledge and skills to manage their day-to-day finances, make prudent investments and plan for their longer-term needs.”

Of particularly interest to me, were the key themes of the conference:

1.       Raising professional standards

2.       Building efficient business models

3.       Leveraging expertise and reputation

4.       Integrating technology into every business process

Given that the Asia Pacific financial planning market has some way to reach the maturity of our own, it is reassuring to see these priorities.  Indeed, whilst we quite rightly strive for higher standards, our colleagues in the region view CFP (Certified Financial Planner) as the desired 'base' standard for all advisers.

However, it was also widely appreciated that you can be as professional as you like as an IFA with a long string of letters after your name, but it means very little unless you can get your message 'out there'.  Director-General of the CBI, Digby Jones once told me “Without effective promotion of your product or service, no one will know you exist.”

Commonsense up to a point, but the majority of IFAs I meet in the UK tell me that they do very little by way of marketing their services – largely due to lack of expertise or time.  Yet, our friends in Asia see marketing as crucial to future success and are tackling it as a matter of priority.

And what of technology?

The 'new model adviser' in the Asia Pacific region tends to take this with a pinch of salt.  It is just assumed that technology should be integrated into every process, and what matters most is using it to maximise the time available to see more clients in order to achieve their personal goals.

Given that a majority of IFAs in the UK are not using any form of recognised back office software, there are clearly stark differences in attitudes between the two regions.

But even those that are now embracing technology, should perhaps look to our colleagues further East, with a view to building strategic relationships and sharing best practice.  Contact me if you would like details of financial planners and industry contacts in the region.

Philip Calvert – Head of Sales and Marketing

Quay Software Solutions

Philip.calvert@quaysoftware.co.uk