Why bother helping your customers to manage their savings?
Ask yourself this; how have the supermarkets become so powerful?
TESCO, Sainsburys, ASDA, Morrisons etc have all become omnipresent because they offer customers a one-stop-shop. They make sure their customers can buy everything they need for their daily living. Televisions, computers, plants, books, clothing, petrol, furniture, toys, alcohol, shoes and even financial services, are all available from what used to be a food and grocery store. This strategy has resulted in customer retention, more sales, more revenue and a greater understanding of their customer’s requirements.
There are therefore many reasons why professional financial advisers should be following in the footsteps of the supermarkets by protecting their customer base by extending their business propositions to help customer manage their savings.
Make More Money!
Generate additional revenue to maximise the recurring income available from ‘every’ customer. Managing customer deposits, for the average financial adviser, will generate an additional £10,000 - £25,000 income per annum, NOT INCLUDING the additional regulated revenue produced on the back of offering a managed deposit service. Advisers using our system regularly report generating additional regulated business as a direct result of our deposit based service, one has even been quoted as saying:
This proposition is great value! From 1 enquiry, I have generated sufficient additional income to more than cover my fees for 12 months.
Control your Customer’s entire Financial Wealth.
People want help! The majority of people do not manage their savings, resulting in poor rates of interest and low earnings. Interest rates are currently at their lowest ever levels (May 2013) but it is still possible to increase savings returns by over 200% - 300% if the savings are managed properly. This creates an opportunity for the financial adviser to offer an additional service that will create greater loyalty and less competition.
Remove the Threat.
When completely dismayed with savings returns, customers visit their bank or building society. When told there are no decent savings accounts on offer they are easily persuaded to meet the established financial adviser to invest in equity funds. Whilst the banks are currently assessing their options, the majority of building societies still offer financial advice to their customers (your customers) and will happily sell them an investment product rather than send them elsewhere. All financial advisers should be doing their utmost to prevent this contact and to remove this threat.
Generate more Referrals.
Managing deposits presents the opportunity to offer guaranteed returns without any risk to capital. Because it is difficult for people to manage their savings, having the use of a bespoke savings system is more likely to get them talking to their friends and family because it changes the way people think about their savings.
Develop more Professional Connections.
As difficult as it for individuals, it is even more difficult for Trustees, Power of Attorneys, Businesses and Charities, because they also have their businesses to run. Accountants and solicitors have customers with thousands of pounds in under-performing deposit accounts. On top of this, any solicitor acting as a Trustee or Power of Attorney is not fulfilling their client responsibilities if they are not providing the highest available returns on the deposits they manage. This puts their business at risk and it is a risk that can be removed this by you offering to manage the deposits for them.
Differentiate your Business Proposition.
What is the real difference between services offered from one financial adviser to the next? Also, consider this; if a financial adviser is not managing their customers’ deposit requirements, are they really offering holistic financial advice? We believe that a business providing a managed deposit service offers more to their customers than those that don’t. Stand out from the crowd and differentiate your business to find the real difference it makes to your customer base.
The majority of savers are over-loyal to their bank or building society and have become apathetic to managing their savings. This results in extremely poor savings returns and disillusioned savers. Stimulating a change of behaviour to find the best paying accounts will generate additional customer loyalty, more referrals and higher levels of income.
Investment Markets and Volatility
Over the last 10 - 15 years, investment markets have been extremely volatile presenting advisers and customers with huge amounts of uncertainty. Managing savings provides the following:
- A degree of certainty on which to establish a strong foundation for a long term financial relationship and a long term investment portfolio.
- A guaranteed positive conversation, even when stock markets are down.
- A better customer understanding towards risk and return.
- Protection of your business if any customer ever feels the need to make a complaint and engage the service of the ombudsman.
Banks and Building Societies
Banks and Building Societies have continually mismanaged customer savings to their own advantage, yet, strangely, customers remain loyal. This loyalty is used to generate other income streams such as mortgages, investments, pensions, tax planning etc. These may or may not be areas in which you work, but having control of your customer’s financial decision making process is better than not knowing. Managing their savings will give this control.
Cash is Non-Regulated.
All customers hold cash and it is non-regulated. Broadening a regulated business proposition to include the management of savings provides the professional adviser with:
- Greater access to customers.
- More comfortable customers. Those customers that worry about stock market volatility can be appeased by the performance of their savings portfolio. They can be assured they have a good balance of performance risk and security. It adds a different dimension to the conversations rather than topic of ‘risk’ dominating all discussions.
- New business opportunities. How many other financial advisers manage customer deposits? Whether it is personal, corporate, trustee, power of attorney or charity money, your customers will be talking about something different to their friends and colleagues, presenting new opportunities for referrals and recommendations.
Your customers will only need to talk to you! They will no longer go to the bank to discuss their savings, putting you in an even greater position of control and responsibility. You will be doing something the banks cannot do. Removing a large influencer, such as the bank, protects your customer base and your business.
Broaden the Business Proposition
How do you broaden your business proposition to generate additional income from managing customer savings? Simple:
- Make them more money, or
- Make it easier to manage.
Our savings system will help you to do BOTH of these things. Contact us to find out how!
Develop more Business from existing Professional Connections
Managing customer deposits is not limited to personal deposits. Developing a reputation for Cash Management will enable the development of new opportunities with any accountant relationship you may hold, or wish to develop, for Corporate Deposits or with a solicitor for Power of Attorney and Trust Deposits. Just like everyone else, these people do not know where to turn to manage customer deposits effectively. The best way to get MORE referrals from professional connections is to offer a safe, risk free and guaranteed solution to their customers’ savings problems. Once referred, you can then build your relationship with the customer direct to offer your regulated solutions.
De-Risk your Business
Customers are more likely to make a complaint when the value of their investment falls than at any other time. If the management of deposits is included in your business portfolio, any complaint can be counter-acted by the decision the customer made to balance their portfolio with deposits. When the Financial Ombudsman receives an appeal from a customer complaint, their starting position is; the business has been miss-sold until proven otherwise. Demonstrating the management of cash alongside the investment portfolio will only compliment everything else that was done and clearly show a wider objective than just selling a regulated product.
Most customers lack the confidence to make the right savings decisions due to the plethora of accounts and the amount of information that causes confusion. All of these issues can be overcome with by engaging with the Portfolio Manager system whilst utilising the support of you, the professional financial adviser, with the support of us, the savings specialists.