This article has been written by Gaurav Suri, Senior Executive VP and Head - Marketing, UTI Mutual Fund.
In How IFAs must look to the future, I looked at consumer trends that will impact the way IFAs conduct business.
Given the above trends or changes, if an individual can adapt quickly and mould himself or herself in a way that will enable the business to grow and cement relationships, the future is bright.
For instance, times (and markets consequently) will become volatile and complex. The markets being interconnected respond to stimuli from across the world and create alarm amongst retail investors. Investors mostly enter the stock market when it is on a high and exit in panic when it hits a low. This does not instill confidence in the consumers to encourage participation in the capital markets.
Implication: IFA’s should look at customer on-boarding and acquisition through fixed income products and establish the category experience and confidence. This will help them get a steady stream of earnings and business which will form the bedrock of building a large scalable business.
The first stage to running a promising business is to figure out the purpose of being in it– is it incidental, supplemental or fundamental to your life.
I would say that the future is bright if a combination of Ethos, Pathos and Logos is used by IFA’s.
Ethos
This is the distinguishing spirit or characteristics of the IFA- this truly will help in personal branding and is what sets somebody apart. It could be a set of values, or a belief system that is internalised and practised every day. It is better earned than talked about. It is your doing rather than talking.
Pathos
Being a good listener and an empathetic one is powerful. It can build great relationships as you are able to fundamentally engage with people at a very deep level. By sharing and revealing a part of yourself can help unlock the client’s dreams and passion.
Logos
The ability to connect data points and trend lines points to the principle of reason and judgment.
Above all the shift has to happen from being furniture sellers to financial architects. The house here represents the larger life plan; the rooms and spaces reflects goals and milestones; the furniture (products) represents credible ways to making it real. How many of us buy furniture without designing the home?
The time has come to stop furniture selling and become financial architects. This shift will truly see a golden era for the IFA business.
IFAs need to scale up and grow the business to a level which becomes sustainable as a high volume low margin business. They should use technology to acquire customers.
Technology is only going to be more prevalent and technological solutions are on the rise.
Technology can also be leveraged to get more face time with customers. Be their life advisers. Satisfy the value seeking behaviour by offering differential, quicker service with technology.
The views expressed are of the author and not the organisation he represents.
