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Overcoming challenges keeping advisers up at night

The word “entrepreneur” is defined as: a person who organizes, operates, and assumes the risk of a business. From this definition, it is clear that most financial advisers are entrepreneurs.

Being an entrepreneur and specifically an independent financial adviser comes with its challenges. However, the COVID-19 pandemic has put more pressure on financial advisers, causing them to think harder about their financial security and longevity.

In light of the Global Entrepreneurship Week (16-22 November 2020), life insurer FMI has identified three major challenges that independent financial advisers need to manage correctly to ensure they succeed:

managing high client interaction levels,
sourcing new clients (and staying connected to old ones), and
staying abreast of the latest trends and technology.

As a financial adviser it’s all about your clients; what your clients need, what they want, where they are, where they’re going and who they can refer along the way.

Neil Wolno, acting CEO at FMI (a Division of Bidvest Life Ltd) points out that the pandemic has brought new concerns about client affordability. This raises the risk of IFAs losing revenue and momentum, which will have a negative impact on their practices.

“At a time when most customers are likely looking to freeze, reduce or even cancel their policies, it’s more important than ever for advisers to focus on building relationships and demonstrating their value,” mentions Leza Wells, Chief Product Actuary at FMI.

One way of getting around this challenge is to embrace the move to digital client servicing. Digital servicing wasn’t broadly accepted before COVID-19, but now it’s got sudden credibility. Instead of meeting clients for coffee and a face to face chat, advisers are doing video calls while operating 100% remotely. Younger customers are especially open to this remote approach.

Offering advice and tips for their clients also helps: “Share good news stories and client friendly documents with your clients, which show the importance of expert advice and the value of their policy,” says Wells.

Click here to read the FMI media release that includes more about managing high client interaction levels, as well as staying abreast of the latest trends and technology.

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