The Name Game in Financial Services: Why It's Not What We Call Ourselves, But What We Deliver

By Steve Conley, Founder, Academy of Life Planning

In a recent report by NextWealth, the consultancy firm made a compelling case for why financial advice businesses should rebrand themselves as financial planning firms. The report suggests that the term "financial planner" is more appealing to younger, more qualified professionals and that planners typically manage larger portfolios. While the report offers valuable insights, it's crucial to remember that what truly matters is not the label we attach to ourselves but the quality and appropriateness of the services we provide.

The Semantics of Advising and Planning

The terms "financial adviser" and "financial planner" are often used interchangeably, but they carry different connotations. Advisers are generally associated with investments and products, while planners focus on a client's life plan, emotional well-being, and cash flow modelling. However, these are not mutually exclusive roles; a financial planner can advise on investments, and an adviser can offer holistic planning. The real question is, are we meeting the needs of our clients effectively?

The Value of Non-Intermediating Financial Planning

Financial planning, when done without the financial advising component, can be an incredibly valuable service. This is particularly true for individuals who manage their own investments or hold non-investment assets like property, businesses, and occupational pensions. The planning process can also be beneficial for groups, such as families or small business owners. What's essential is that the planning is holistic, taking into account not just financial goals but also emotional, intellectual, and spiritual well-being.

Technology and Holistic Planning

The NextWealth report also highlights that financial planners are more likely to make better use of technology, such as cash flow modelling. This is a crucial point. Technology enables us to offer more comprehensive and personalised services, aligning perfectly with the holistic approach to financial planning.

The Importance of Specialisation

While the term "financial planner" may be gaining traction, there's still room for specialisation within the industry. Whether it's later-life planning, estate planning, or mortgages, advisers can become experts in specific areas, offering targeted solutions to specific problems.

Conclusion

As the financial services landscape evolves, it's not the title that will define our success but the value we bring to our clients. Whether you call yourself an adviser or a planner, what truly matters is your ability to offer holistic, appropriate, and high-quality services that meet the diverse needs of your clientele.

Based on the Citywire article: Goodbye advisers, why financial planners are the future. https://bit.ly/3FlEkbF