Since the onset of the global financial crisis, some financial planner banking teams have noticed a shift in the relationship they have with their practice principal clients.
“More so than in the past, principals are seeking us for advice and expertise in terms of how they can manage their finances and diversify their service offering,” National Australia Bank national manager of financial planner banking Malcolm Arnold said.
“In the last three to four months, roughly 20 to 30 per cent of all our enquiries have related to ways principals can manage cashflow and establish alternative income streams.”
Prior to the financial downturn these types of enquiries equated to only about 10 per cent, with the majority related to lending.
Principals are becoming increasingly aware that financial planner banking specialists can help them address not only cashflow issues, but provide expertise regarding ways they can realign their service offering, sell client books, bring forward succession plans and re-forecast acquisition strategies, Arnold said.
“With more principals experiencing cashflow stress, more are seeing the value in engaging with industry experts as early as possible,” Arnold said.
According to Commonwealth Bank of Australia (CBA) market specialists national manager Stewart Creighton, there is growing awareness that financial planner bankers have broader knowledge of the challenges faced by principals.
“Particularly given the current market environment, principals are now more than before seeing the value of working with a specialist rather than a generalist banker,” Creighton said.
“There is greater acknowledgement by principals that specialists can go beyond general banking enquiries and help practices to plan, budget and make projections.”
