Subscription models are becoming ever more present in our day-to-day lives, everything from music and TV, through to coffee and personal hygiene products can now be acquired by means of subscription. There are however some industries and professions, including Financial Planning, that are overlooking the benefits of this option when it comes to providing services to their customers and clients.
Subscription models can help to reduce customer acquisition costs and increase customer loyalty and engagement, as customers are more likely to stick with a service they are already paying for, whilst also allowing companies to predict and plan for their cash flow more accurately, as they rely less on one-off transactions. Finally, subscription models can help to provide a more personalised experience for customers, as companies can tailor their services based on customer preferences.
Traditionally, Financial Planning has operated around the notion that if a client is seeking Financial Advice, they pay a fee for the service provided by their adviser, whether that’s an upfront cost for advice and/or a percentage of the return on their investments. What this often means is that those who need Financial Advice, who aren’t necessarily in a position to pay substantial fees, or who don’t have the capital available to make investments, are overlooked by Financial Planning firms.
On a recent episode of the Financial Planner Life Podcast, we spoke to Sam Tate from New World Financial Group, who through the use of FinTech and subscription models, are changing the way the industry offers Financial Planning services to clients. It’s their belief that we’re entering a time where, due to factors such as AI, online investment platforms, and an increase in Self-Employment and start-up businesses, current and future generations are looking for more convenient, accessible, and cost-effective ways to manage their finances.
“We believe that what we do as Financial Planners should benefit everybody. We shouldn’t be pricing people out, we shouldn’t be putting up barriers to entry, so it’s our aim to take those barriers down.” – Sam Tate, New World FG
By offering an all-in-one, subscription-based financial planning platform, New World Financial Group is helping to simplify the process of managing and tracking your finances.
The different levels of this model mean you can select from a range of plans, from basic financial management and budgeting to comprehensive financial planning and investing. With the subscription model, you can access a range of services for a single monthly fee without needing to purchase multiple products. This makes the process more efficient, cost-effective and therefore, accessible to those who don’t fit the typical ‘Financial Advice Client’ mold.
“We charge for the work involved in building personal financial plans – rather than a percentage amount based on the size of investment. This means we can remove conflicts of interest and scale our services to make financial services accessible to everybody.” – New World Financial Group Website
This inclusive attitude to Financial Planning not only opens the door to non-standard clients but also demonstrates a desire to give something back, instead of only seeking to work with the higher net worth clients. This in turn leads to a better brand image in the eyes of a lower net worth client base, a largely untapped source in the world of Financial Advice, who are likely set to inherit large sums of money during the great transition of wealth.
To find out more about how New World Financial Group is challenging the current fee model in the Financial Planning profession check out the podcast episode here:
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