Who Should IFAs Target Post RDR?

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There is a risk that post RDR, many IFAs will fall in to the trap of thinking that the only way to make ends meet is to focus on the HNW end of the market. The problem of course is that this is going to become an even more crowded space than it currently is.

The real opportunity lies in developing IFA propositions which are attractive to two groups:

• The ‘mass affluent’ who may still need ‘regular’ advice and the relationship that goes with it.
• ‘Event related clients’ who do not want a regular ongoing relationship but who will from time to time require advice (e.g. immediately pre-retirement, post an inheritance etc)

Such propositions will have differing elements but there will be some common themes including the need to:

a) Squeeze out all extraneous costs so as to keep the cost of advice to a minimum. Part of the solution for this will be to exploit technology to bring down operational costs.

b) Expand the perception of the value the client receives from simply the advice at the time of delivery to an ongoing service. Again, digital technology can help such as using your website as the ‘hub’ for your client communications, so ensuring regular, relevant client engagement (see http://ifaline.com/content/put-your-website-work for more info).

c) Create the right online presence such that your clients recognition of your professionalism is consistently supported and enhanced. This includes issues such as social network participation.

d) Be in the right place when potential new clients are looking for help. Increasingly this will be less about newspaper, yellow pages and seminars and more about web based promotion, search engine optimisation and free online webinars.

These might seem like significant challenges for those IFAs who are perhaps not that comfortable with technology. However, those accept and embrace the web as a standard business tool will find that it provides them with unique routes by which they can deliver their propositions to their clients.