Taking a varied approach to financial services is the name of the game in today’s market, and professionals who aren’t exploring their options when it comes to a multidiscipline approach may find themselves falling behind.
Multidiscipline practices mean higher client satisfaction
It’s every financial professional’s goal to make sure his or her clients are not only receiving valuable services, but also feel contented with them. Data shows that a multidiscipline approach may be just what advisers need to boost this kind of satisfaction.
Research has found that clients who receive a multidiscipline approach to their wealth planning services tend to be more satisfied. It’s easy to understand why this might be the case, as being able to work with one financial advisory firm is preferable to going through the process of creating multiple relationships with a high number of different advisors. A multidisciplinary practice (MDP) can save clients time and stress.
Attracting high-net-worth clients
Studies have also shown that MDPs tend to appeal to high-net-worth individuals. This makes sense, as people with greater wealth also tend to have more complex financial needs, whether it concerns asset protection, wealth transfer or anything in between.
While the average middle-market consumer may require services related to life insurance and the like, a high-net-worth individual will likely have more specialized needs that require expert insight from various professionals.
Meeting multidiscipline challenges
Obviously, every financial advisory firm would invest in multidisciplinary services if it were that easy. However, turning a standard practice into an MDP comes with unique challenges of its own. Chief among them is finding the expertise necessary to provide clients with solid financial advice.
Different advisors will have their own areas of proficiency, and having professionals try to offer advice on matters they’re not expert in is a recipe for disaster. However, hiring experts in every field isn’t a feasible financial option for many practices. This makes it important to determine which areas may be the most valuable to clients.
For instance, with most Americans requiring long term care at some point in their lives, hiring a professional skilled in LTC insurance may make more sense than focusing on one who specializes in executive compensation.
Another option is partnering up with organizations designed to support MDPs. Wealth management firms exist that are geared toward providing special services to financial professionals offering a multidisciplinary approach.
Finally, investing in the right technology is also a must. Different tools can help MDPs streamline their operations across multiple product lines. This will not only make business operations smoother, it will lead to more effective service, and therefore more satisfied clients.
Expansion for greater customization
Greater focus on customer wants is the direction the financial services industry is headed. Tailoring services to client needs has always been a cornerstone of success in the financial advice market, but figures show it’s becoming more important than ever.
In fact, the recent 2014 Insurance Industry Outlook Survey from KPMG found that 52 percent of senior insurance executives are highlighting changes in customer focus as the primary driver of change to their business. Much of this has to do with technology, and the way in which consumers can now research different products and services they used to have to rely on advisors to explain to them.
In a world where clients can easily access a wealth of information relating to financial services, professionals have to do more to stand out from the crowd and offer consumers a strong value proposition. Becoming a one-stop shop through the use of a multidisciplinary approach may be just the solution professionals are looking for.