The Future of Wealth Management is all about Financial Experiences


Amar Pandit
A respected entrepreneur with 25+ years of Experience, Amar Pandit is the Founder of several companies that are making a Happy difference in the lives of people. He is currently the Founder of Happyness Factory, a world-class online investment & goal-based financial planning platform through which he aims to help every Indian family save and invest wisely. He is very passionate about spreading financial literacy and is the author of 4 bestselling books (+ 2 more to release in 2020), 8 Sketch Books, Board Game and 700 + columns.

January 2, 2020 | 5 Minute Read

Globally, this industry started with a sharp focus on product & investment returns and thus was largely transaction led. Even today you see most financial institutions, their salespeople, and their advisors practising product-led distribution strategies.
This is because it seems easy to sell a product and to get your foot in the door.
Gradually some moved to an asset allocation centred approach, and this was followed around 50 years ago (in the US) by a financial planning centred approach. However even today financial planning is not the norm in the US as financial planning was only accessible to high net worth families and above. In India, the financial planning movement started around 16 years ago and has a long way to go.
The pace of change, however, is exponential and we are witnessing competition not just from our industry but from different industries. Google, Amazon and now WhatsApp have all entered the payments space and the day is not far when they will enter the wealth management space as well. Even if they do not, someone is likely to disrupt this space and make it what it truly should be (Experience Centric).
We are one such institution where we strongly believe that the wise way is to help people and families focus on their “Why of Investing”. Every family just wants to know “Am I doing fine?” and it is this simple yet tough question that world-class advisors should help their clients with.
The future of wealth management is a seamless fusion of Financial Planning and Financial Experiences. This will be an omnichannel experience (digital, in person, and on-call ) helping people live their happiest financial life. The future is all about what was once available to the wealthy is now available to every person (We call this Affordable Luxury.)
Even globally a handful of advisors and wealth management firms focus on creating the same Wow experiences like the ones created by Starbucks, Apple, and Amazon. In India, IFAs are still largely product and transaction-focused. Some IFAs, rather very few, talk about Asset Allocation and Financial Planning. Thus there is an immense opportunity for a forward-looking advisor or the Future Advisor.
However, it is easier said than done. You must first Unlearn and then Start Learning to have meaningful conversations with your clients, invest in technology, and deliver a wow experience to your clients.
Ask yourself the following:
- What type of conversation am I having with my clients? (Product/Transaction Centered, Asset Allocation, Financial Planning Centered or Experience Centric)
- Do I talk to my clients about Products, Returns or about their goals, or their happiest financial life?
- Have my clients trusted me with 100% of their assets? Do I even know my client’s entire financial situation?
- Am I delivering a world-class financial experience to my clients?
You will do well to remember this again and again that the future of wealth management is a combination of Financial Experiences and Financial Planning. Thus, it is imperative for you to focus on delivering a wow experience to your clients and be their financial coach helping them live the happiest financial life possible
P.S. Click here if you would like to know more about “How can I build the Wealth management firm of the Future?“
Similar Post
Growth
Bust your E-Myth
There is a wonderful quote by computer scientist Alan Kay (on the value of looking at old things in a new way) - “A change in perspective is worth 80 IQ points.” Well, I don ....Read More
28 June, 2022 | 5 Minute Read
Growth
The Whole Point of Life
On December 7th, I wrote a post about the Power of Practice. In case you haven’t watched the video in it, I would encourage you to see it. I had taken this video during a Boston ....Read More
21 December, 2021 | 5 Minute Read
Growth
This is the MOST IMPORTANT Skill that you should invest your Time and Energy Mastering!
I recently met (at our 2-day Bootcamp) an IFA, who has been in this industry for 20 years, built a Rs.150 Crore Assets Under Management (AUM) but seemed very frustrated with the st ....Read More
18 February, 2020 | 6 Minute Read
Growth
The Kodak Way
Did you know that Kodak was one of the four most valuable brands in the world in 1996, just behind Disney, Coca-Cola and McDonalds? The “Kodak Moment’ was a popular catchphras ....Read More
6 December, 2022 | 5 Minute Read
Growth
Bust your E-Myth
There is a wonderful quote by computer scientist Alan Kay (on the value of looking at old things in a new way) - “A change in perspective is worth 80 IQ points.” Well, I don ....Read More
28 June, 2022 | 5 Minute Read
- 0
- 0
0 Comments