[The Wrap] Lockdown low down (have advisers taken their own advice?)

The financial services sector appears to have dealt with the lockdown extremely well; but I can't help thinking we will all rejoice when it ends.

Monday, May 4th 2020, 9:20AM

Whether we move to Level 2 next week is not something I am qualified to answer; nor, might I say, are many people who are calling for a shift.

While it appears our sector has come through this period well, I suspect most people are like me and want to get out and about. Financial services is a people business. It's about getting out in front of clients and building relationships with them.

There's nothing like shaking a client's hand; enjoying a coffee with them and eyeballing them. Video conferencing has a place, but it can't replace face-to-face.

A related thought is what does our experiences tell us about the future of roboadvice? When it comes to money matters the human element is critical.

While we have all become far more competent at using technologies, like video conferencing, I do wonder how they will be adopted into day-to-day business in the future?

My guess is there will be a bigger uptake but it won't become "the new normal". (One of my most hated cliches BTW).

What gives me real heart about financial advice right now comes from our annual survey of mortgage advisers. This year we added some new questions to help get some understanding of how advisers are coping with the lockdown and the period when we get some more normality back in our lives.

The mortgage space is particularly interesting as it is the one advice area which has essentially stopped. No housing sales. No new business. No income from upfront commissions.

When things change, and the housing market starts up advisers will have to build new pipelines of business and also face the risk that house prices may fall, so their income will drop too.

Premlinary results show they are not too worried about the future. Indeed their biggest issue is a perennial one related to the industry. (Many of you can guess what this is; but the big reveal will be in our feature out soon).

Feedback like this is reassuring that the advice has managed OK in the lockdown and is well-placed for the future.

As financial advice is a lot about helping clients' future needs you'd hope advisers have been doing the same with their businesses. Over the past decade markets have been extremely kind and good advisers have been well-remunerated...hopefully they have followed their own advice and put some of this income aside for the rainy day.

Tags: Opinion