By: Tony van Niekerk, Editor COVER

In my experience, over a 40-year career, there has never been a time as conducive to a thriving financial advice environment as today. Sounds a bit optimistic, taken the state of our country and the global economy, but let me unpack what informs my statement.

1. Local socio-economic and political challenges, uncertainties.

We can look at this from different perspectives. Firstly, everyone, no matter their financial standing, is worried about their financial future and are finding it exceedingly difficult to make long term decisions. Those privileged enough to have a nest egg, are confused about the diverse messages they get from all the various media sources. Those who have crafted a certain standard of living, even if lower middle class, are looking for ways to protect the little they have and to shape a better future for their children. Business is exposed to fast evolving and ever-increasing risks, looking not just for financial advice, but strong risk management assistance.

2. Legal and tax complexity

This means that any client with a reasonable financial standing, who wants to accumulate or protect their wealth, would have to look for professional advice. Long gone are the days of once-off product advice. The need now is for regular interaction and ongoing advice. This not only strengthens the client relationship and allows advisers to get to know clients much better, but it also opens the door to many more upselling and cross-selling opportunities.  

3. Professional standing.

You, and your profession can stand proud in the sophistication of qualifications and the professionalism of the journey to become a CFP (Chartered Financial Planner). It also means that if you can add that designation behind your name, you can not only differentiate yourself, but you have also crossed a major bridge to creating trust with potential clients.

4. Innovative products

From life to short-term, investments to healthcare, the innovation in financial solutions has been stellar. Flexibility and customisation mean that clients need ongoing advice on shaping risk and investment portfolios to suit the ever-changing circumstances.

5. Technological advances

These are myriad, from access to the external data sources, to process automation and sophisticated AI (Artificial Intelligence) built into FNA software, remote advice capability and amazing client communication tools. These have all brought the future back to us.

6. Global Village.

Linked to the technology explosion and the local political challenges is the automatic globalisation of your business. Every client that moves overseas has the potential to help you diversify your business, creating a much less volatile income environment.

7. Work where you long to be

Remote working possibilities created due to changing client behaviour and technology, boosted by the forced adoption during COVID means you can now move to that quiet rural or coastal village you have always dreamed of one day retiring in. You can even emigrate and still successfully retain a client base.

8. Unlimited Information

Lastly, and probably one of my favourites, is the unlimited access we have to information. With the click of a button, you can have access to the knowledge and experience of thousands of experts and researchers in any topic you heart desires. You can attend global events without leaving your house and you can even study at hundreds of universities, completely free. The self-learning possibilities are limited only by your appetite.  

Perspective – The final word

The legend that comes to mind is that of the United States shoe company executive who was sent to India in the 1920s to see if they should expand there. After three days he messaged that he is returning as there is no opportunity, because Indian people all walk barefoot. A competitor also sent a representative and he messaged back: “The opportunity is massive! There are millions of people here with no shoes.”

Right now, the world belongs to the bold, the adaptable and the innovative. In the words of Benjamin Disraeli: “The secret to success is to be ready when your opportunity comes.”