Category: Financial Advisor

They Once Called Banking “Dull,” No One Believes That Now

 

As a banking & financial services change management motivational speaker who came out of those industries, I am intimately aware of the myths. The biggest myth is that the profession is dull. As we all know, nothing could be further from the truth.

Banking Exchange Contributing Editor Ed O’Leary recently wrote:

“Banking has always been primarily a relationship business…so it seems to me that in a successful commercial lending business model, there remains the need for creative intervention of a human sort…at its heart, commercial lending is a highly interpersonal business where we earn our way by being creative with our customers and their needs and with our banks in the management of the risks of financial intermediation.”

While O’Leary is clearly well-versed of the changes that digitalization has brought to the industry, he is even more aware of the unjustified perceptions that have led to a decline in the industry finding bright new talent.

“The lack of newly trained talent augurs well for lucrative careers and job security. But what might it really portend for the industry? Maybe too many people have paid too much attention to the nonsense that banking isn’t innovative or interesting. I can’t imagine anything further removed from reality.”

If commercial lenders have been wrestling with how they will meet the challenge of change, financial services brokers have been going through even more turbulent times. In fact, and in strange ways, change is forcing all of us to come together.

Are you determined to manage the changes?

Managing the Changes in Financial Services

When I give keynote addresses to brokers on how they’re managing changes within their area of the financial services and banking industry, I am often told, “Scott, it’s overwhelming,” or “You won’t believe what’s coming next.”

Twenty years ago, with the exception of science fiction writers, no one in the financial services community could have imagined concepts such as “customer intelligence,” AI, Blockchain, FinTech companies, cloud computing, robotics or cyber-security for that matter.

One of the many projected changes PWC Global envisions for 2020 is the expansion of the shared economy for the financial system.

“By 2020, consumers will need banking services, but they may not turn to a bank to get them. Or, at least, maybe not what we think of as a bank today. The so-called sharing economy may have started with cars, taxis, and hotel rooms, but financial services will follow soon enough.”

There just may be, as the report suggests, a sharing of financial sources just as we currently experience with ride sharing and apartment sharing.

The changes will force commercial lenders and financial services organizations to be more inventive, more customer service oriented and more digitally savvy than ever before. The good news is that those institutions and leaders who have the courage to envision managing these changes will be rewarded with incredible opportunities.

Are you resolute enough to embrace the possibilities?

 

Engage Scott Burrows, Banking & Financial Services Change Management Speaker for your next industry meeting through this website or by calling us at: (520) 548-1169

 

 

 

 

 

 

Overcoming the Adversity of the Online Insurance Tidal Wave

As a motivational sales speaker in the insurance and financial services industries, whenever I am asked to deliver a keynote address on overcoming adversity, I always feel like I have come home.

After an accident that left me diagnosed as a quadriplegic, I was encouraged by some incredible people to join the insurance and financial services industries. I found a new mindset and developed the resolve to thrive in this highly competitive market. Within five years, I was awarded entrance into the Million Dollar Round Table (MDRT). After a second car accident, I was once again challenged to reinvent my life and was inspired to share my story with others as a motivational keynote business speaker. My mission is to inspire insurance and financial services agents, brokers and organizations to overcome the adversity they face in the marketplace.

Fighting the Tidal Wave

Like it or not, the internet is becoming the primary enabler for how people get their insurance information. While the independent or exclusive agent has been the main channel of distribution, each year our industry is seeing a greater influence of direct sales.

According to Techcrunch.com, “While many factors are driving the tipping point in the online distribution of insurance, the thread that ties it all together is actually a simple one: changing demographics. The millennial generation has tremendous buying power, and will soon become the industry’s primary customer, whether in consumer or commercial lines.”

At the same time that the demographic is shifting to be more favorably inclined to a nameless, faceless method of buying insurance, the average age of brokers has been increasing. Insurance companies must understand that new buyers have different purchasing patterns. To quantify this pattern, let’s go back to March 2015 when the Gallup organization compared how different generations are engaged with their insurance companies.

Gallup found in comparing Millennials to Baby Boomers, 31 percent of Millennials were “Fully Engaged” with their insurance providers as opposed to 41 percent of Baby Boomers. At the other end of the spectrum, 27 percent of Millennials were “Actively Disengaged”, i.e., they couldn’t care less where they get their coverage as long as they are covered, as opposed to 23 percent of Baby Boomers.

Writer Jason Fisher in a piece entitled, “2018 Life Insurance Statistics And Facts” concluded that in 2018: “Roughly 50% of adults admitted to searching for life insurance online last year, and about a third even tried to make their purchase online.” Agents and brokers believing that internet insurance purchases are a passing trend need to reconsider their position.

Overcoming the Online Adversity

In study after study, experts found that Millennials and Gen-Xers value interaction with brokers and agents, if not in sit-down meetings, then by email, personalized text messages and correspondence through agency websites. The key is engagement.

The Gallup Poll surveyed 18,000 adults and concluded: “Insurance companies see substantial business gains when they engage customers of any generation. Engaged insurance customers are less sensitive about pricing…they spend more and buy a wider variety of products, including financial offerings.”

You can overcome challenge of the internet but it will take determination to engage your customers one way or another. Customers still want to hear from you. Do you have the grit to reach them?

Contact Scott Burrows, Insurance and Financial Services Sales Motivational Speaker through this website or call us at: (520) 548-1169

 

 

 

 

 

 

 

 

 

 

 

Year of Change Ahead for Financial Advisors: How Will You Respond?

Every one of us involved in the financial and insurance industry knows that 2019 will be a year of change.

Bob Veres, writing for Advisor Perspectives (December 10, 2018), pointed out at least five major challenges that will impact financial advisors this year. They include new “BI” or best interest standards and fiduciary oaths; planning for the coming Bear market and making clients your partners in the financial planning process; the pressure to shift away from AUM (percentage-based) portfolio revenue models to flat fees; the trend away from traditional insurance agencies to self-directed purchases; and the opportunities in utilizing customized “Robo” software within your practice. Veres concluded that change is never easy and financial advisors and insurance brokers must prepare for whatever is next.

Will You Evolve or Be Left Behind?

How will you adapt your business this year? Have you identified your strategies to meet the comprehensive financial planning needs of clients about to retire as well as younger generations embarking on their careers?

As a financial advisor, in order to stay ahead you will need to wear many hats in managing client expectations. Will you be able to show clients at all stages of their careers the value that you are bringing to the investing equation, and are you determined to make the necessary emotional investment and to be an educator as well as advisor?

In 2019, and beyond, financial advisors will need to focus on new niche markets to differentiate themselves. They will need to embrace the latest tools to set themselves apart in a highly competitive financial advisory market. It will not be a matter of offering customer service, but tapping into technology to access changing regulations and ultimately to use that information to recommend the right insurance and investment products.

The questions asked above, and many more, can only be answered by one person:  you. The expanding workload, the deluge of information, evolving fiduciary rules, the need to offer clients greater transparency, and the maze of ever-expanding investment options will require each financial advisor to have the grit to maintain their success and to rise above average. “Average” advisors will suffer from average on-line ratings especially as more millennials enter the work world. Average will mean being left behind.

Be a Student, Be Coachable

The most successful financial advisors will be those who understand that they are students and not “professors.” Being a student, even if you have been in the business for many years, means updating your practice management, understanding and employing new technologies and the educational components necessary to help your clients reach their goals. It means attending conferences that offer niche market products and opportunities, evaluating the latest practice management solutions and being facile enough to use the social media to set yourself up as an authority.

While new investors may not be sophisticated in terms of investing, they understand technology and how to access information. Financial advisors must match that intensity and sophistication and have the knowledge to answer tough questions their clients find online. It is a tall order but a tremendous opportunity.

The year ahead is where the financial advisor will be a student who is determined to learn what is needed to make the practice successful.

 

For more information on how financial advisors can develop a winning vision, contact Scott Burrows, Financial and Insurance Industry Motivational speaker, through this website or call us at: (520) 548-1169