How Banking & Finance Can Avoid "The New GFC"

The Western world is growing more and more fearful. Terrified. So much that we are heading into an economically crippling GFC - A Global Fear Crisis.

In Australia, 87% of baby boomers believe their grandchildren will “probably never own a home”

In Europe, 74.5% of people believe there will probably be third world war in the next decade.

In the US it’s even worse, where 83% of people believe we are heading for another economic collapse. (Then again, almost 40% of Americans believe we are either likely or very likely to be heading towards “an apocalypse of biblical proportions”)

And as everyone in finance knows, fear in the economy never ends well.

Thanks to years of the mainstream media knowing that the best way to increase ratings and online views is to press our fear buttons – with doom and gloom headlines, shocking images, and every night they seem to be showing “a report no parent can afford to miss.” Add to that the rise of politicians on both sides of the aisle who have worked out the best way to get people’s votes is to speak (or tweet) about “those dishonest, scheming in the opposition”.

In Australia, we have to also remember that everyone is nervous about the property market that has been overcooking for years – so might be heading for a crash, and the banking Royal Commission has just exposed some absolutely terrible behaviour in the banking sector. 

It’s no wonder investors, institutions, and mums and dads with superannuation are absolutely terrified about what might be just around the corner. 

So what can we do?

The good news for anyone working in financial markets, particularly those in the advice industry, is that this makes the need for calm and competent advice even greater. 

When people are drowning, the person who throws them a flotation device is instantly adored. And most importantly trusted.

So if your clients are terrified, if you can be the calm, considered voice in their lives who can show them that you are watching what’s going on, seeing the patterns that you’ve noticed before, and help them calmly prepare for what’s ahead, you will gain their trust for life. 

Be the voice who helps them make reasonable and rational decisions instead of those based on all this terror.

Marty Wilson is the author of 12 books on taking the longer view on life in his What I Wish I Knew book series, and a TED Speaker on resilience through times of change.