CFP|Financial Planning India

Scene I

Mr. Deep is experiencing regular bouts of stomach disorder. He schedules an appointment with a Doctor. At the end of a thorough examination, the doctor diagnosed him of minor Colon disorder and prescribed 400 milligram of Collaspa. But Deep isn’t too happy with the prescription as the doctor in the soap, he watches on TV had prescribed 250 milligram of Collaspa to cure his patient with similar symptoms. He conveyed the reel-life experience to his real life doctor. Now what will this doctor do?   

Well, the doctor probably won’t physically humiliate him or throw him out of his chamber, but rest assured he will firmly tell his disobedient patient, who the true Professional is in this case.

 Watch out for Scene no II

Mr. Ravi has surplus money parked in his bank Fixed Deposit. He is looking at an option to earn better returns on his money and came to visit a Financial Advisor. After necessary diagnosis of his risk profile, his Financial Advisor suggests him combination of suitable mutual fund schemes. But Ravi has other ideas, he got a tip from his friend that “Share X” (an ultra small cap) stock will double in a couple of month’s time and so he suggests that the Financial Advisor should arrange for buying this hot stock instead of the recommended products. What will the Advisor do now?

This above instances (Advisor’s dilemma) is not one off but frequently happens in our own Financial Services Industry. Clients come to us or shall I say, Advisor visits client and meets them in a typically non-professional atmosphere. Clients wish to discuss investment based on the advice they read in a newspaper, magazine or tips they got from their friend or family. And unfortunately Advisors actually engage in the discussion. Why?

 The primary reason behind such behavior is the belief that the client will go elsewhere if he do not entertain the discussion. “Is this view actually true?”

Man is a product of his thoughts

 All our beliefs evolve from the experience which we come across in our own life or are shared with us by someone we trust. Traditional product-centric sales training have spun a lot of such beliefs that are held sacred in the financial services industry. Advisors are tutored that “the client is always right” and we have to impress clients with our charm, the history of the company we represent & our knowledge of the product. Think back to the doctor analogy. To what proportion, you think a patient takes into account the doctor’s charm & ability to amuse; the history of the company whose medicine he is prescribing or his technical knowledge about the medicines. In most case, the answer is “to a very limited extent” because that knowledge is not at all important to the patient. What he actually cares is that whether he can trust the doctor to help him to overcome his physical suffering.  Similarly, your clients are looking for professionals and not Industrial Salesman, someone they can trust & who can help them with their financial health.

The second interesting aspect of sales training is the teaching it imparts on the “ways to overcome objections”. Why do you think client raise an objection? Is it because they suspect that the advisor is behaving more like a salesman rather than as a trusted professional? We all have the same reaction to anyone who is trying to sell us something: we tend to become defensive as we sense the salesman is trying to do something for his own benefit rather than for our good. Instead, if you create an environment that is so professional and client-centric that your clients immediate sense that their interests are the only subject of the whole appointment, there is no reason for an objection. 

A True Professional

So what shall we do to demonstrate ourselves as a true professional rather than a product provider. The list below suggests some of the practices which can make us a really trusted professional. This list is indicative & not exhaustive:

1. We should focus on the best interest of our clients. The whole object of our engagement is primarily to improve the financial health of the client rather than on what products or services we can offer them. We should help our clients to identify their goals and the values upon which those goals are based so you can recommend solutions that offer them the highest probability of achieving them.
2. Communicate to the clients the true facts of their financial situation, even when digesting the facts seems difficult. They deserve the truth & we need to tell it them even if we fear that it may cost us the relationship. This will pay rich dividends in the longer run.
3. Work by appointment only. This will establish the value of your time as well as your client’s time.
4. Ideally an Advisor should invite his clients at his office and not sit in a public place or at client’s home. Working in a controlled, professional environment will impress on the minds of the client the seriousness of the activity he is doing as well help you to provide the best services possible.
5. Maintain general professional skills while concentrating on areas of expertise .
6. Consult/Refer with/to specialists (a specialist may be a CA, Lawyer, Insurance Expert) in suitable cases.

 There can be a host of interesting possibilities, if you are willing to switch from being only product providers and embrace comprehensive financial planning in a professional manner:  you will notice client objections will disappear and be replaced by trust; you will discover newer sets of financial needs and additional assets, which might be used to achieve them. Because of the high-trust relationships that will eventually be established; you will command more respect & your client’s will follow your advice; they will enthusiastically refer qualified prospects to you because they would like to share such an outstanding experience with their family and friends, just as you would refer your family and friends to an extraordinary doctor.

 Together if we continuously thrive to evolve our services & improve on our deliverables, we will be recognized as hardcore professionals in financial services. It is therefore my humble request to all of you to work towards the goal of establishing yourself as a true Financial Doctor.
CFP, Certified Financial Planner

 Malhar Majumder CFP^CM is a Corporate Trainer with IMS Proschool & is a Financial Planner. He invites your comment at [email protected] 

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