The business of providing financial advice to the semi-affluent investor, is on the brink of a major evolution. Contributing factors to this evolving situation are:

• The commoditization of goods and services. Increased use and sophistication of available technology is driving the product and service offerings to be increasingly commoditized.
• Commoditization leads to lower rates, fees and commissions, benefiting clients but driving change and re-alignment for service providing companies.
• Financial services industry increasingly becoming a lucrative class action litigation target for lawyers. The industry is viewed as having “deep pockets” and all indicators point to the current upward litigation trend continuing.
• Response of the industry to these attacks is conformity through meeting compliance requirements. Compliance issues along with the increased use of technology are commoditizing many individual services provided by advisory firms and diminishing their value-add.
• Increased costs for suppliers – higher compliance requirements lead to a higher cost base resulting in overall erosion of profitability.
• Increasingly financial advisors are unable to compete on the basis of low margin commoditized products or services and are losing their ability to differentiate themselves.
• The resultant commoditization of goods and services is also alienating the client who is increasingly seeking individual value- and meaning-centered advice. Clients who are better informed than in the past and demanding better advice for their money are highly frustrated with the reduced value creation that is taking place in a highly commoditized industry and are demanding "psychological self-determination", - that is the ability to feel that they have greater ownership of their personal and financial futures.

Mindman performed qualitative research amongst a group of semi-affluent investors attempting to determine their expectations of wealth, it’s influence on their quality of life and how that relates to the services being offered by the financial services industry.

The outcome of the research indicated that what is required of the future dominant financial advisory firm is an understanding of their clients from more than just a financial perspective if they intend to be able to tailor their advice to each client’s specific needs

In response to the outcome of the research Mindman developed a suite of proprietary products and processes that assist the financial organizations more deeply understand clients and help the clients more deeply understand themselves, their environment and the drivers that guide their decisions.

Value of the Mindman model to Financial Services Organizations:

• Greater level of understanding of the individual
• Obtained in short period of time
• Increased differentiation from competitors
• Overall encompassing view of individual enables > quality solution
• Greater opportunity to create lifelong partnership – now can more deeply understand individual as he progresses through life’s stages
• Opportunity to keep in touch with existing customers
• Able to offer a truly “unique process”, uniquely customized to individual client requirements
• Gain quick insight into new clients as well as gain deeper insights into existing clients.

Value of Mindman model to the clients of Financial Service Organizations:

• Enhanced individual experience
• Time-saver – financial organization is getting to understand client requirements / drivers in shorter period of time
• Also considering qualitative factors, not just traditional quantitative factors
• Increased sense of focus on me, the individual
• Greater buy in to quality of the solution as both quantitative and qualitative factors have been considered

To learn more about the Mindman model please refer to the contact us section for a representative in your region.