IFA's and the Internet - where's it going?

There has been a big hoo- ha about the use of social media and the internet for IFA's and financial advisers over the last year - so much so that we are often asked as to whether or not we see any benefit in it.  Now, working in a recruitment agency specialising in financial services recruitment you wouldn't have thought that we would have the answer to that question but aha, hold on - we have to use the same media as financial advisers and IFA's, yet we are targeting a much smaller market.  So yes, we do have a very good idea as to what is effective, whats worth using and what isn't.

In terms of marketing oneself, starting a blog such as this can be a good way for the financial adviser or the IFA targeting the consumer looking for financial planning advice to get good exposure to a web savvy audience.  It doesn't take much to get onto blogger or wordpress, write about what you are experienced in and target the consumer you want as clients.  Ping as many search engines as you can, update with regular posts and get your blog onto Technorati, Digg, and so on. Technorati use some sort of claim system where you have to claim your blog by posting some weird, alien like code such as YPFD9ZHKE6XF or something along those lines but some of the others are simple and much easier to use.  Blogs are a good way to get clients interacting by the use of comments box's, it also makes sure they remain on your site for longer, which will give you more chance to secure them as potential clients.

Social Networking, the waster of untold man hours and the pariah of many an employer is here to stay and that means as a financial organisation, a one man IFA practice or whatever, you have to be using it. Facebook, Twitter, FriendFeed, Tumblr, Plurk, there are many and they alll attract different demographics so its a good idea to look into what type of audience are using them before advertising your practice or financial advisory services on them.  Phillip Calvert of IFA life is a great exponent of the social networking phenomenen and his IFA Life website is a great place to start when looking for information on what to do as a financial adviser or IFA.  They also run regular webinars and seminars on the subject.

Longer term, eventually, we will have financial advice being offered over the internet.  Of course, it will take huge amounts of scrutiny and it will be very heavily regulated but that is, most definitely, the way we are moving.  If, as an IFA or financial adviser you aren't web and social media savvy by the time that comes around, then you will be left behind. With the advent of Web cam's, skype, etc, etc, its only a short step to over the net financial advice so get ready people, the future is coming, and its nearer than you think!

Mortgage - the dual pricing effect

Dual Pricing - what effect is it having on the mortgage market from a consumers perspective and what effect is it having from the mortgage brokers viewpoint? To give you an indication as to what dual pricing is we'll take a look at the dictionary definition which states that 'dual pricing is the selling of identical products in different markets at different prices.  In effect, in laymans terms, what the banks and lenders are doing is offering their most competitive products direct to the consumer themselves therefore negating the need to use intermediaries and mortgage brokers.

From the consumers perpective what do they do? They pick up their mortgage calculator, work out what repayments they can afford, go along to their bank, have that amount reinforced and bingo, if they meet the criteria they are given the mortgage.  Is this an advised mortgage though? Has the consumer thoroughly had their financial situation looked at by a skilled mortgage broker, or have they simply been offered the cheapest but perhaps not the best deal?  At a time when financial advice is needed the most, in the midst of an economic crisis, the consumer is not being provided the best truly 'independent' advice that can be offered.  The likelihood is that they will be 'sold to' by a bank adviser/salesperson rather than provided financial advice. The other likelihood is that they will also be 'sold' protection products that they don't need to achieve some target somewhere. Of course, there is the benefit of being provided a cheaper mortgage deal and to be brutally honest, although its not part of TCF, thats pretty much all the majority of consumers care about in the current economic situation.

Almost 70% of all mortgage business was introduced prior to the credit crunch and the introduction of dual pricing, so for the lenders to bite the hand that feeds them as it were, by negating the need for intermediaries and mortgage brokers throughout the difficult period was, silly, to say the least. Of course, the lenders were swift in stating that dual pricing wasn't a conspiracy however, most mortgage brokers will certainly remember which banks and lenders stood by them. The question to be asked is why the lenders would offer the same mortgage products through mortgage brokers if they are so poorly priced in comparison to the same product provided by them? Is it simply greed?

From the perspective of the mortgage broker, dual pricing, although in its 2nd year now, and expected to be a stealthy killer of the mortgage broker and the industry as a whole, has not yet destroyed the market as expected.  Many of the mortgage brokers we speak to have simply moved towards offering a more rounded financial advice offering, covering investments and pensions as well and the consumer appears in most cases to be responding. Although, to survive, many brokers are now providing a fee based mortgage service, it hasn't been to the absolute detriment of the mortgage industry, suprisingly. Every mortgage broker and intermediary has an opinion as to the validity of dual pricing and of course, it doesn't champion TCF in any way, shape or form but what the consumer has to weigh up is whether the lack of advice can be justified for a cheaper mortgage and for many, the reality is - it does.

Economic green shoots - a recruiters view

Everyone working in financial services whether they are a financial adviser, an IFA, a mortgage adviser or whatever, they all have their own opinion as to whether we are really seeing a sustained uplift in not just the UK but the worlds economy. So are we? Have we gone through the worst of it now or is this just the small respite in the tornado of economic catastrophe?

I always say this, but working as a recruitment specialist within the financial services market gives us a unique insight and an all round perspective into how the market is faring overall.  Because we are reliant on the provision of a service to financial services organisations for our income and that service is adversely affected by the lessened need for recruitment, we, as companies suffer, due to the cuts in staffing and redundancies.  Who is going to take staff on in the middle of an economic crisis? Certainly not the industry hardest hit!   Perhaps as much as any financial adviser or IFA, financial services recruiters have been affected by the turbulent economic situation to the detriment of many good recruitment organisations, so much so that I wouldn't be surprised to find out if a large number had gone to the wall. However, working close to the coal face but not actually at it, affords us a very good view of the economic picture.

Financial advisers and IFA's we speak to have recently begun to notice a change, a surge in the market, a confidence returning to the consumer, particularly in the investment market. This can only be a good thing. We as recruiters working with the financial services industry have also noticed an uplift in the number of mortgage advisory roles on offer, comparitively to six months previous. Six months ago, we would have been lucky to have three mortgage adviser roles on our books, down the line we have noticed a huge lift in the numbers of banks and other operators requiring mortgage advisers.  A simplistic view I know, but is it because money is being moved, consumers are borrowing again?  I can see no other reason although I am sure someone will correct me.

The upshot is however, the requirement for more mortgage advisers is one of the key indicators that the market is really, finally picking up.  So lets nurture these green shoots and watch them grow back into economic saplings - but maybe with thicker roots this time and not grown in quicksand eh?