adviser information evening australia october 2013 c
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OPTIMUM ADVICE C L A R I T Y – S I M P L I C I T Y - A C T I O N
- The New Financial Advice Standard
Personal Experience
Market Snapshot
Optimum Advice
The Opportunity
Q&A
Close
Agenda
Why are you here?
See Financial Services as an opportunity
You’re entrepreneurial willing to back yourself
Want to make a positive contribution
Want to make a decent income
TIME – 20 week program– 4 week intensive
EFFORT – education, work, “lean in”
MONEY – Investment
1995 1996
NasdaqUSD$0.70
NasdaqUSD$901.00
20122001
1998
1849
1869
1848
What has changed?
• 150 years ago creating and selling products
• 2013 creating and selling products
• It’s all about product distribution
• So nothing really…
Deregulation mid 80’s
SIS - 1993
Financial System Inquiry [Wallis] – 1996
FSRA – 2002-2004
FOFA – 2012/13
??
Legislation & Regulation
"Cross-selling is a way to drive the value of a business up, and it's still something we as an industry do slightly poorly.”“33% of broker customers were open to at least taking on loan protection insurance from a broker and that better than three out of 10 will just say “YES” straightaway.”
“We’re keen to leverage our broker network to distribute more products, supporting our strategy to become our customers’ primary bank.”
-
Andrew Inwood – Founder & Principal - CoreData
Mark Woolnough– Head of Broker Distribution, ING Direct
THE CURRENT MODEL HAS REACHED IT’S USE BY DATE
• Based around product sales NOT client outcomes
• Doesn’t address life’s financial complexity
• Only deals with ‘what’s left over’
“We believe that everyone should have the opportunity to live a fulfilling, empowering and enriching life, free from financial worry.”
• 58% not preparing for retirement*
• They ‘risk’ living twice as long as their savings will last
• 42% aged 55-64 expect govt contribution #
* - HSBC – The 2013 Future of Retirement – Australia Report
# - ASFA – Feb 2013
The Unfortunate Reality
• Do you believe you live an extravagant lifestyle?
• How much of your current lifestyle are you prepared to sacrifice in order that you could retire?
The Relevant Questions
• Avg Annual Income - $73,944+
• Funds at retirement:*
Plan =$512k+No Plan =$112k+
• Aged Pension currently: #
$19,000 single$29,000 couple
* - HSBC – The 2013 Future of Retirement – Australia Report+ - ABS Full Time Adult AWOTE May 2013# - Dept Human Services – Sept 2013
What this means…
- $0 by 73- $0 by 67
Life shouldn’t begin with what’s left over…
“You’ve got to start with the customer experience and work back toward the technology—not the other way around”
Less stress
More wealth
Guidance – ‘how to’
What clients want…
What clients need…
Clarity
Simplicity
Action
We’ve gone right back to the beginning…
…completely re-engineered the advice process from the ground up
…to provide an elegant yet simple solution…
…that includes everything
But life is complicated…
• Too much month at the end of the money…
• Time poor - information overload
• Can’t get ahead… not sure how
• Life just gets in the way… yet again
reducing debt
investing
cashflow
travel / holidays
retirement
property
savinginsurance
structuring finance
mortgages
tax
spending
family
pensions
estate planning
Life is complicated…
• Start with the basics – understand where the money goes?
• Life shouldn’t begin with what’s left over
• Create positive emotional connection with your money
• Drive behavioural change
• Build ‘Net Asset Value' – your true worth
We create order and structure
=ADVISORY PANEL
THE CHALLENGE
• Usually reserved for HNWI and UHNWI
• They understand paying for professional services
• They buy ‘time’ with people… greater exposure to opportunity
• Expect delegation of expertise
Q - How to transfer that thinking to other sectors of the market?
Q - How to engage clients?
Q - How to make it profitable?
THE OPPORTUNITY
• The ‘middle market’ - being deserted in favour of HNWI and Ultra HNWI
• Haven’t been provided with this level of service
• In desperate need of help
• Experience dictates they can, will and do pay
The Potential Market
THE NEW ADVISER
Who are we looking for:• Authentic
• Transparent / Open
• Compassionate
• Trustworthy
• Socially responsible
Someone who can…• Engage the client
• Deliver a blueprint
• Follow the plan of action
• Help alleviate clients’ financial stress
• Become a financial ‘life coach’
7/11 Lead Qual’n Process
•11 customer contact points
•7 hours of time
Lead Sourcing Document Preparation
Client Meeting
Upfront PaymentExpert EngagementPlan Creation & Signoff
Strategy Presentation Implementation Ongoing Coaching
How does it work?
Hold the client engagement meeting
Hold the implementation meeting
Become a ‘Gifted Generalist’
What the adviser does…
Compile and manage the client file
Manage all client communication
Define & test the client strategy
All the back office admin
Write the client Strategy Document
Write all the product related Statements of Advice
What the adviser doesn’t do…
RG146 – Financial Advice
Cert IV – Mortgage Advice
Module 1 – Lead Qualification
Module 2 – Client Engagement
Business in a Box
Business Tools
Back Office Support
Module 3 - Finance
Module 4 - Implementation
Module 5 - Strategy Development
Lead Generation
Plan Generation & Review/Signoff
Enhanced Admin Support
Fully Qualified Authorised Rep
Ongoing Qualified Leads
Plan Signoff
Continuing Professional Development
Advisory Panel
Comprehensive Admin Support
‘TELL’1ST MONTH‘SHOW’3
MONTHS‘DO’ONGOING
The Optimum Advice Program
Expected Adviser Income
REVENUE
Month 1 classroom $0
Month 2 L-Plates $4,000
Month 3 Red P’s $4,000
Month 4 Green P’s $8,000
Authorised Representative $14,000
$150,000+ per annum
IRIDIUM FINANCIAL SERVICES
We are creating a new standard for financial advice which leads the market and will set a new global benchmark
Holistic, easy to understand, jargon free
Outcome/goal focused – they’re at the centre
They get a long term financial ‘coach/partner’
40 week implementation program
Ongoing ‘Coach & Mentor Meeting’
FOCUS—increase financial net worth
What The Client Gets
End-to-end business process & IP
‘Business In A Box’
Comprehensive Training & Education
Ongoing Coaching & Mentoring
Continued Professional Development
Peer Review program
Continually monitor, measure, refine, adjust
What The Adviser Gets
Optimum Advice is a fundamental and profound shift in the philosophy, methodology and detailed process of providing financial advice that has client outcomes as its core guiding principle.
Time to create a point of D I F F E R E N C E
Always with the focus on the client outcome
“Innovation distinguishes between a leader and a follower”
Do you want to lead or follow?
OPTIMUM ADVICE E N G A G E – A D V I S E – I M P L E M E N T
- The New Financial Advice Standard