FOLLOW US
Follow us!
We are a proud member of the Financial Services Online network!
Connect with us on your favourite social media platform for the latest financial news, views, tips, tricks, resources and information.
No Credit Check
No Credit Check :: News
Quick Links: | Personal Loans | Car Loans | Bike Loans | Boat Loans | Truck Loans | Home Loans | Business Loans | Debt Consolidation
Financial Advisory Expansion: Balancing Growth and Regulatory Challenges
Financial Advisory Expansion: Balancing Growth and Regulatory Challenges
The financial advisory sector in Australia is poised for significant expansion, with the potential to extend advisory services to an additional 650,000 clients.
This promising development hinges on resolving existing regulatory barriers.
A detailed analysis by Empower Business Advisory, sponsored by Colonial First State, underlines this potential shift in the industry landscape.
The findings in the Advice Practice Profitability Report suggest that advisors are planning to grow their client portfolios, increasing average client numbers from 110 to 152. With 15,500 financial advisers each potentially onboarding nearly 42 new clients, the projections see the total number of Australians receiving ongoing financial advice climb to approximately 2.4 million.
However, expanding the client base comes with its own set of challenges. Two-thirds of advisers acknowledge hurdles in scaling their practices, with inefficiencies in service provision and capacity constraints being primary concerns. Additionally, ongoing regulatory servicing requirements put extra pressure on advisers looking to extend their reach.
To tackle these challenges, many advisers plan to streamline their operations and cut costs associated with client servicing, while simultaneously focusing on boosting revenue from each client. Over the next three years, 54% of advisers aim to enhance revenue per client, with 50% proposing to increase their annual client load.
Recep III Peker, founder of Empower Business Advisory and author of the report, reflected on these findings in a recent media announcement. He noted, “We explored advisers’ strategic priorities for the next three years and found increasing capacity to serve more clients annually is one of the industry’s top priorities.”
Navigating Capacity Constraints
As government conversations around financial advice reforms continue, there's ambiguity over whether practices will use this additional capacity to lower client fees or increase client intake—if servicing costs drop. A report by Professional Planner disclosed that administration and compliance overheads constitute 56.5% of total advisory costs.
The demand for financial advice is indeed rising, despite its currently high costs, reflecting a keen consumer interest. An October survey by the Financial Advice Association indicated that nine out of ten clients felt the advantages of financial advice outweighed its financial implications.
A recent Professional Planner roundtable shed light on the ethical obligations of financial advisers to improve productivity and cater to growing demand. Discussions pointed out a noticeable reservation among some advisers; they may lack an inherent motivation to scale their client base if their current earnings remain stable with fewer clients.
This mindset could counteract the goals of the Delivering Better Financial Outcomes initiative, designed to reduce bureaucratic red tape and empower advisers to better accommodate their clients, ultimately bridging the existing advice gap.
Published:Wednesday, 20th Nov 2024
Source: Paige Estritori
Share this news item:
Finance News
| AI in Financial Planning: Unlocking Potential with Prudence 21 Nov 2024: Paige Estritori Artificial Intelligence (AI) has rapidly become a focal point in modern financial planning, offering the potential to transform how advisers interact with clients. By providing automated solutions for routine tasks and analyzing vast data sets, AI promises increased efficiency and more personalized financial recommendations. - read more |
| Financial Advisory Expansion: Balancing Growth and Regulatory Challenges 20 Nov 2024: Paige Estritori The financial advisory sector in Australia is poised for significant expansion, with the potential to extend advisory services to an additional 650,000 clients. This promising development hinges on resolving existing regulatory barriers. A detailed analysis by Empower Business Advisory, sponsored by Colonial First State, underlines this potential shift in the industry landscape. - read more |
| Aussie Homeowners Show Resilience Amidst Rising Interest Rates 20 Nov 2024: Paige Estritori Amid the global economic shifts, Australian homeowners, notably exposed to fluctuating interest rates, have defied pessimistic predictions and demonstrated resilience. Unlike many countries, most Australian mortgages are subject to variable interest rates, which heightens sensitivity to cash rate changes. - read more |
| NAB Faces Legal Action for Delayed Hardship Responses 19 Nov 2024: Paige Estritori In a recent development within the financial sector, the National Australia Bank (NAB) finds itself embroiled in a legal dispute initiated by the Australian Securities and Investments Commission (ASIC). At the center of the controversy are allegations that the bank failed to timely respond to hundreds of loan hardship applications from its customers. - read more |
| Employment Holds Steady Amid Rate Speculation 15 Nov 2024: Paige Estritori Australia's unemployment rate remained fixed at 4.1% this October, marking the third consecutive month without change, according to newly released Australian Bureau of Statistics data. Despite this steady figure, the growth of new jobs appears to be waning. - read more |
| UK Broker Hit with Multi-Million Pound Penalty for Misallocated Premiums 15 Nov 2024: Paige Estritori A UK brokerage owner has been ordered to pay a substantial fine exceeding £1 million (approximately $1.96 million) and has been barred permanently from the financial services industry. This comes after regulators found him guilty of financially mismanaging funds intended for insurers and providing misleading information. - read more |
| Unprecedented Surge in Australia's ETF Market 14 Nov 2024: Paige Estritori Australian investors are rewriting the record books in the exchange-traded fund (ETF) sector, with data from BetaShares illustrating impressive growth figures that have taken the market by storm. Inflows have surged to $23.7 billion by October, far exceeding the previous yearly high of $23.2 billion established in 2021. - read more |
| RBA's Inflation Strategy Shows Signs of Easing Pressures 13 Nov 2024: Paige Estritori In a move that is being closely watched by economists and financial analysts, the Reserve Bank of Australia (RBA) has maintained a firm stance on interest rates, reflecting its concerns about underlying inflation dynamics. - read more |
| Debate Over Student Debt Cancellation Heats Up 12 Nov 2024: Paige Estritori In a bold move earlier this month, Prime Minister Anthony Albanese announced plans for a potential reduction of student debt by 20% if the current government retains power. This proposal seeks to alleviate the financial burden on graduates, signaling a shift towards addressing Australia’s student loan crisis. - read more |
| Resilient Aussies Maneuvering Through Financial Pressures 11 Nov 2024: Paige Estritori Amid surging cost-of-living concerns, Australian homeowners are showcasing resilience by staying afloat with mortgage payments, the recent reports from two leading banks reveal. These findings come at an intriguing time, reflecting how individuals adapt despite macroeconomic pressures. - read more |
Finance Articles
| Savvy Spending: Innovative Budgeting Tips for Smooth Loan Repayments Managing personal finances judiciously becomes paramount when dealing with loans and their repayments. A potential obstacle many encounter is preserving or enhancing their credit score while simultaneously undertaking the necessary financial commitments of loan repayments. Understanding how to navigate this terrain is vital to financial health. - read more
|
| Understanding Your Credit File: How to Seek Loans without Negative Impacts Understanding financial health is paramount when venturing into the realm of loan acquisition. It's the backbone that supports not just your immediate monetary requirements but ensures longevity in your fiscal stability. At the heart of this understanding lies a critical aspect: the credit score. It's a numerical representation of your financial trustworthiness, influenced by past fiscal decisions and behaviors. - read more
|
| Budgeting Basics to Keep Your Credit Score Healthy While Seeking a Loan Understanding the nuances of financial health is a crucial component in the journey of loan acquisition. It is the bedrock on which potential borrowers build their case for credibility and reliability. Among the myriad of factors influencing your fiscal stability, credit scores stand out as a beacon indicating your creditworthiness to lenders. A robust credit score simplifies the path to securing loans, garnering favorable interest rates, and negotiating better terms. - read more
|
| How to Improve Your Financial Health and Secure Loans Effortlessly Financial health refers to the state of one's personal financial situation. It encompasses a variety of factors, such as income stability, expenses control, savings, investments, and debt management. - read more
|
| Understanding Your Credit Footprint: Borrowing Strategies to Keep Your Score Intact Understanding the mechanics behind credit scores is pivotal for anyone navigating the intricate world of finance. A strong credit score does not only unlock the gates to a plethora of borrowing options but also secures favorable interest rates, which can save you a substantial amount of money over time. It acts as a financial passport, one that enables you to achieve milestones such as purchasing a home or car with ease. - read more
|
| Navigating Financial Uncertainty: Tips for Managing Money Worries Financial stress is a common issue that affects a large portion of individuals, often due to unexpected expenses, unemployment, or a high cost of living. It can lead to both mental and emotional strain, influencing one's quality of life and decision-making abilities. Credit scores, a critical measurement of financial health, are used by lenders to evaluate the risk of lending money. - read more
|
| Understanding Soft Inquiries: How to Check Loan Options Without Affecting Your Credit Score Soft inquiries are a type of credit check that does not impact your credit score. These checks occur when you or a company reviews your credit report as part of a background check, pre-approval process, or other non-lending purpose. - read more
|
| Understanding No-Credit-Check Loans: A Lifeline for Managing Financial Stress Wisely Financial stress can feel like an unstoppable force, a cycle of worry that impacts not only our peace of mind but also our fiscal health. It represents the anxiety and pressure associated with the inability to meet financial obligations, be it due to unforeseen expenses, unemployment, or a plethora of other reasons. - read more
|
| How to Use Loan Comparison Tools Effectively - A Guide for the Credit-Conscious When it comes to securing a loan, the terms you agree to can have a lasting impact on your financial wellness. It's crucial to strike a balance between finding a loan that fits your needs and maintaining a healthy credit score. This delicate equilibrium is where loan comparison tools come into play, serving as navigational aids in the vast sea of credit options. - read more
|
| Choosing the Right Loan for Your Personal Needs in Australia Choosing the right loan can be a pivotal decision in your personal financial journey. In Australia, where a diverse range of loan options is available, selecting the loan that aligns perfectly with your needs is more crucial than ever. A judicious choice can help you fulfill your dreams—be it buying a new home, investing in education, or consolidating debt—while ensuring that the repayments remain manageable and do not lead to financial strain. - read more
|
|
|
Understanding Your Credit File: How to Seek Loans without Negative Impacts Understanding financial health is paramount when venturing into the realm of loan acquisition. It's the backbone that supports not just your immediate monetary requirements but ensures longevity in your fiscal stability. At the heart of this understanding lies a critical aspect: the credit score. It's a numerical representation of your financial trustworthiness, influenced by past fiscal decisions and behaviors. - read more
|
|
|
Navigating Financial Uncertainty: Tips for Managing Money Worries Financial stress is a common issue that affects a large portion of individuals, often due to unexpected expenses, unemployment, or a high cost of living. It can lead to both mental and emotional strain, influencing one's quality of life and decision-making abilities. Credit scores, a critical measurement of financial health, are used by lenders to evaluate the risk of lending money. - read more
|
|
Loan Hunting with Confidence: How to Check Options Without Credit Damage Embarking on the journey to secure a loan can feel like navigating a minefield with your credit score as the prize. It's no secret that your credit score is your financial fingerprint, impacting not just your loan prospects but also the terms you're offered. However, the act of loan hunting itself, if not done carefully, can take a toll on this crucial number. - read more
|
|
|
Understanding Soft Inquiries: How to Check Loan Options Without Affecting Your Credit Score Soft inquiries are a type of credit check that does not impact your credit score. These checks occur when you or a company reviews your credit report as part of a background check, pre-approval process, or other non-lending purpose. - read more
|
|
|
How to Improve Your Financial Health and Secure Loans Effortlessly Financial health refers to the state of one's personal financial situation. It encompasses a variety of factors, such as income stability, expenses control, savings, investments, and debt management. - read more
|
|
|
Understanding Your Credit Footprint: Borrowing Strategies to Keep Your Score Intact Understanding the mechanics behind credit scores is pivotal for anyone navigating the intricate world of finance. A strong credit score does not only unlock the gates to a plethora of borrowing options but also secures favorable interest rates, which can save you a substantial amount of money over time. It acts as a financial passport, one that enables you to achieve milestones such as purchasing a home or car with ease. - read more
|
|
Maximize Your Loan Options without a Credit Footprint: Strategies to Know As we navigate the complexities of today's economy, the significance of credit can scarcely be overstated. Whether we're considering a home mortgage, a new car, or managing our personal finances, our credit health often dictates the terms and accessibility of financial support. A robust credit score can open doors to favorable loan terms and rates, while a poor score can narrow our options and cost us more in the long run. - read more
|
|
Understanding Soft Credit Checks: Safeguard Your Score During Loan Comparison When embarking on the journey to secure financing, particularly for significant purchases such as a car, your credit score takes center stage in the eyes of lenders. A credit score is a numerical representation of your creditworthiness, derived from your financial history and behaviors. It wields substantial influence on your ability to acquire loans with favorable terms. - read more
|
|
|
Understanding No-Credit-Check Loans: A Lifeline for Managing Financial Stress Wisely Financial stress can feel like an unstoppable force, a cycle of worry that impacts not only our peace of mind but also our fiscal health. It represents the anxiety and pressure associated with the inability to meet financial obligations, be it due to unforeseen expenses, unemployment, or a plethora of other reasons. - read more
|
|
|
Choosing the Right Loan for Your Personal Needs in Australia Choosing the right loan can be a pivotal decision in your personal financial journey. In Australia, where a diverse range of loan options is available, selecting the loan that aligns perfectly with your needs is more crucial than ever. A judicious choice can help you fulfill your dreams—be it buying a new home, investing in education, or consolidating debt—while ensuring that the repayments remain manageable and do not lead to financial strain. - read more
|
Need Help Finding a Loan?
Find out now if you qualify and compare rates, offers and options from multiple lenders - without a credit check!
Knowledgebase
Personal Loan:
A Personal Loan is a means of obtaining finance from a financial institution or financial product provider and the lending criteria usually depends on criteria such as personal income and expenses, assets and liabilities, employment status and previo
A Personal Loan is a means of obtaining finance from a financial institution or financial product provider and the lending criteria usually depends on criteria such as personal income and expenses, assets and liabilities, employment status and previo
Quick Links: | Personal Loans | Car Loans | Bike Loans | Boat Loans | Truck Loans | Home Loans | Business Loans | Debt Consolidation