In financial services, many firms are focused on providing bottom-line value to their clients. What most of them forget is how to properly communicate that value.
A good PR strategy has a greater impact on the bottom line than most firms realise. This book shows how to put in place an effective PR program in the financial services industry, and how great communications can add significant value to a firm.
Between them, Claudia Pritchitt and Leeanne Bland have over 50 years’ experience in public relations, communications, and marketing. Here, they explain the key tools needed in an effective communications strategy as well as why plain English is imperative in the jargon-heavy world of financial services.
The Finsider is our blog series providing insights into the Australian financial services landscape. We interview experts who will share their perspectives on ideas and issues facing the financial industry today and in the future.
Our special guest this month is Shail Singh. He was appointed the lead ombudsman, investments and advice at the Australian Financial Complaints Authority (AFCA) in 2023, having acted in the role since 2022. Shail is a lawyer by profession and has worked both as an in-house legal counsel in commercial roles, and for regulators, including WorkSafe Victoria and the Medical Practitioners Board of Victoria. He then trained and worked as a financial planner before becoming a case manager with one of AFCA’s predecessor schemes, the Financial Ombudsman Service, in 2010. Shail was appointed as an ombudsman when AFCA opened its doors in November 2018, becoming Senior Ombudsman, Investments and Advice, in 2021.
What do you think are the most important issues facing financial services industry today?
Three things I would say. Scams, poor financial literacy in the community, and where financial planners fit into the new world. You only need to look through your email inbox to find a scam e-mail, purportedly from a bank, or some other institution and its heartbreaking to see people clicking on links, responding to these and suffering significant losses. It’s also a real challenge for regulators and Government to determine the extent of the bank’s responsibility in such circumstances.
In the advice space I think the important question will be where financial advisers fit into the new world in circumstances where Government has clearly committed to super funds providing financial advice to their customers and there is the prospect that “non-relevant providers” could be allowed to provide personal advice.
The world is also becoming increasingly (financially) complex and financial literacy in the community has not kept up. Financial advisers already, and will continue to play an important role in this regard, making sense of this complex financial world for people.
What has been your biggest surprise in the way the industry has evolved over the past two decades?
If you think back to where we were 20 years ago, it’s a stark contrast. 20 years ago the industry was still about pushing product and hidden commissions. Now it's completely different. The bad apples have left the industry and some dubious business models have ceased. Advisers are now extremely well qualified for what they do due to the implementation of education standards and the adviser exam. I believe they are truly a profession now. This has been evidenced by for example the Government replacing the current best interest duties and safe harbour provisions in the Corporations Act with a true fiduciary duty (as is the case for all other professions) and its commitment to a Code of Ethics, another marker of a profession. Also the requirement in the Code of Ethics to hold each other accountable for conduct is important in this regard.
What do you see as the role of AFCA in the current environment and how has this changed in recent years?
From a financial advice perspective, dispute numbers have continued on a downward trend. So in that context, In the advice space I think our role is really to educate advisers in relation to how to avoid disputes and also reassure them about our processes and that they will get a fair hearing if a matter does go to AFCA. I think we also need to continue to work on ensuring the community is aware of AFCA’s services. While community awareness has increased it still is not as high as it should be.
What is one change you would like to see happen in the financial services industry in the next 12 months?
Regulatory certainty. It would be fantastic if the government can finalise its response to the Quality of Advice Review so advisers can perform their role knowing what the guard rails are. We also look forward to the Government finalising its review of the Code of Ethics, so that advisers can get behind it.
What advice would you give to those starting out their careers in the financial services industry?
I left my legal career and chose to work in the profession as an adviser – it’s a great profession. In terms of a person’s well-being, finance is only second to physical and mental health. It’s all about helping people to navigate a complex financial world. If you’re starting out be a sponge! Pick the brains of experienced people, but ultimately develop your own style. You can make a real difference in peoples’ lives. Don’t be scared by compliance also. If you genuinely act in the consumer’s best interests’ you really can’t go wrong.
