Advisers should broaden value conversation

Intentionomics founder David Penglase, who describes himself as a “financial advice advocate” and is completing academic research in applied psychology, said the latest research on applied positive psychology from the University of California shows there is a growing gap between the value of financial advice and the value of trusted professional advice.

Trusted professional advice can relate to lifestyle and work-life balance issues as well as personal coaching and mentoring, he said.

Often undervalued by financial advisers, Mr Penglase believes that in the client’s mind, this non-financial advice is actually perceived as the more valuable part of the overall offering.

“While the financial planning industry continues to operate in the restrictive paradigm that [advisers'] value is in their financial advice, the potential of the industry to grow and create more meaningful value through extending their brand alignment beyond pre- and post-retirees, will continue to be restricted,” he said.

Mr Penglase believes offering more than just financial advice enables advisers to broaden their client base to include Gen Y and Gen X.

These demographics, he said, have traditionally been outside the ‘preferred client model’ because they generally have a lack of substantial savings or investments to manage and don’t view themselves as potential clients of financial advisers due to branding and value mis-alignment.

“The ability to attract and retain profitable Gen Y and Gen X clients is where potential and significant growth is possible, and will create longer relationships with clients, which means more revenue over a sustained period of time.”

This will also mean more value for clients for a longer period of time, Mr Penglase said – and not just from financial advice.