Navigating the wealth management landscape of the 21st century is becoming a rather complex task for the modern day financial planner. The 2008 global financial crisis has weakened client trust considerably, while the digital revolution has brought disruption to nearly every business sector in recent years. The financial services industry is no exception.

What’s more, a completely new breed of client is also emerging – one that’s more digitally ‘switched on’ and has a different set of expectations to that of previous generations. Add to this the slowed pace of growth in financial services and it should come as no surprise that this sector has its work cut out for it. Especially in recent years as it seeks new ways to re-engage customers, build trust, expand product offerings and grow its bottom line.

This blog post takes an in-depth look at some of the top trends that are changing the face of the Australian financial services sector and explores what the implications might be for today’s top financial planner.

How are client expectations changing?

When it comes to changing client needs, a Bravura Solutions eBook points out that the the modern day, tech-savvy client has a preference for:

• Online research to select products and services;
• Transaction and servicing that is digitally based;
• A greater sense of control over their finances;
• Consulting peers and social media for recommendations;
• Financial coaching instead of financial advice; and
• Changing providers if it means they’ll get better value.
  
  

The eBook further highlights that this emerging client base wants to be delivered the “right advice, at the right time, in the right context”. In short, millennials, and generations to follow, will want to combine the self-service and automated functionalities that you’ve already built into your online offerings with the coaching they expect to receive from you across multiple channels.

The impact of digital disruption on the Financial Service sector

According to a PWC article, "...the digital revolution is transforming the way customers access financial products and services". The intersection between financial services and technology is often referred to as ‘FinTech’. FinTech startups have taken full advantage of the changes in client preferences to develop and introduce financial services software applications that are often more responsive to clients’ needs, more effective and less expensive than those of their traditional counterparts.  

What are the implications for financial planners?

Those financial planners who nurture an outward approach to FinTech developments will be in a much better position for future success than those who choose to remain protective of their existing services, products and client relationships.

To this end, it’s important for financial planners to do their homework about current FinTech offerings to see which ones could be used to augment their services. Take, for example, existing online platforms that assist users in building out their own financial plans. Rather than scurrying to build an in-house version of this tool, a smart financial planner will find out about the possibilities of integrating this existing software solution into his own service offerings to appeal to an ever-evolving client base.

The good news is that the demand for financial advice is increasing in Australia and while technological advancements will continue to disrupt the industry as a whole, clients are still finding face-to-face relationships with their financial planners to be of great value.

What residential property advice should you add to your omni-channel communications?

According to Rob Emmett, CEO of Collins Home Loans, "The great Australian dream of owning your own home is still closely tied in with our national identity."

He adds that, "People prefer to invest and buy property because it’s familiar, it feels safer than shares or other investment options." Given Australia's well documented love affair with residential property, what role can financial planners play to best position themselves to service their clients in this space?


While financial planners are not licensed to give specific property or mortgage advice, they’re often drawn into the conversation by clients wanting to know about the merits of property as an investment. This can be in the form of a direct investment, reverse mortgage (to assist a parent transitioning into a nursing home, for example) or within a self-managed super fund.

A way forward for financial planners to ensure that they can assist their clients to achieve their goals is to form an ongoing and meaningful relationship with a mortgage specialist. A well-established referral relationship with a trusted mortgage specialist, like Collins Home Loans, is one of the best ways to improve client loyalty by providing client-centric services, such as mortgage refinancing  or property investment advice.

For assistance with providing your clients with the best mortgage advice possible, contact one of our mortgage brokers.

Disclaimer: The information provided in this is article is general in nature and is not intended as financial or investment advice and should not be relied on as such. You should always seek your own independent advice from qualified specialists as per your own specific circumstances.