COVID-19 Pandemic Reinforces the Essential Role of Financial Advisers

We’ve heard about the essential role our frontline health workers have played in keeping us safe throughout the unpredictable year that is 2020, and rightly so. Our health must always be the primary focus in the global fight against COVID-19. Essential workers have been rightly credited for putting themselves at risk for the benefit of others in society, and their sacrifices will not be forgotten.

Perhaps lesser known is the ‘behind the scenes’ role being played by an entirely different group of workers during these tough times… that of the trusted Financial adviser.

Financial Advisers are generally not considered essential workers in a traditional sense, but for many Australians they’ve proven to be an invaluable and essential service provider during the past six months.

In many ways Financial Advisers have been working on the front-line in protect their clients finances, advising how to cope with reduced incomes and unexpected redundancies, as well as helping Australians navigate the many financial challenges the virus has created (particuarly with Superannuation and investment portfolio).

Estimates suggest that more than a quarter of Australians are expecting the COVID-19 crisis to impact their financial situation for up to 18 months or longer. This suggests financial advice will continue to play a key role in our fight against the virus.

CoreData’s COVID-19 ‘Pulse Check’ data highlights the value of financial advice in helping Australians navigate the financial challenges of this unexpected crisis. Prior to COVID-19, around two thirds of advice clients told us they’d recommend their adviser (66.7 per cent), however that has jumped to nearly three quarters (74.8 per cent) during the pandemic, with more than four in five (83.4 per cent) agreeing their adviser has acted in their best interests during these difficult times.

The increase in referrals and advocacy is partly driven by the need for a higher frequency of communication between advisers and their clients, leading to ‘higher touch’ and more valued professional relationships.

Coredata’s 2nd Quarter Adviser ‘Pulse Check’ of more than 350 financial advisers found nearly half (47.0 per cent) had experienced an increase in enquiries from existing clients since social distancing restrictions were introduced, while nearly two in five (38.5 per cent) had seen a decline in new client acquisition.

Demand has increased for asset-related advice, driven by market volatility and the financial impact of COVID-19. If you are having troubles with your finances, or want a second set of eyes to help review your situation, now is as great a time as any to reach out for professional, non-conflicted financial advice.

The friendly team of Adelaide based advisers at Humble Goode Financial are available for meetings, to help you navigate throughout this difficult time. You can trust us to ensure your needs are put first, to provide peace of mind and financial clarity for the future.

Book a meeting or give us a call on (08) 7477 8252 to see how we can help you.