TYPE OF RELATIONSHIP
Are you a Personal Client or faceless volume customer?
The expertise of large traditional financial services companies is in processing large customer volumes of small transactions. If you want to be a faceless volume customer, then demand low cost service provision from these companies.
PRIORITY OF STAKEHOLDER
Does your financial advisor/asset manager have a misaligned business model and reward strategy?
You should be the priority stakeholder.
The business strategy of the large financial “supermarkets” is to align employee rewards with maximizing short term returns to shareholders of the company. Incentives are ultimately misaligned away from the best interests of customers. Financial advisors of their brokerage arms are also customarily rewarded for the maximization of client fees and sales. Client satisfaction and meeting client objectives often appear to be of secondary importance.
|KEY PERFORMANCE INDICATORS||AUTHENTIC||Competitor|
|The right values, motivation and behaviours||✓|
|Investment management not sales focus||✓|
|Client satisfaction not fee maximization||✓|
|Appropriate client services over cross-selling||✓|
|Clients the priority, not shareholders||✓|
|Quality over quantity: personal Client not volume customer||✓|
|Transparency not conflict of interest||✓|
|Innovative solutions not maximum "product distribution"||✓|
|Motivation not complacency in the workplace||✓|
|Focus, execution, and responsiveness, not bureaucracy||✓|
*Short sample summary for illustrative purposes only 🙂