Advisers need to look beyond the stereotypical client and reach out to a more diverse range of people, Fox and Hare adviser Glen Hare says.
By targeting one demographic – wealthy, middle-aged men – advisers are stopping potential clients from understanding the value of advice, Hare says.
“Because the industry has been so focused on the white, pale male with the bags of money, the ideal client for the next generation doesn’t really know when it’s the right time to seek advice,” Hare explains. “The profession has never reached out to them, so they don’t really know what an adviser does because the profession hasn’t spent any time educating them.”
Part of the problem, Hare admits, might be the backgrounds of the advisers themselves.
“I would be confident in saying the lack of diversity in terms of advisers themselves is reflected in the lack of diversity in the underlying clients.”
Values that resonate
Hare’s business partner, Jessica Brady, believes diversity is linked to values; if advisers truly want to help more people, she says, they’ll look beyond the wealthy pre- and post-retirees.
“It’s about having a value proposition that is going to resonate with a wider audience,” Brady explains. “If we’re just focusing on solving the problems of people five years out from retirement, then the younger demographic won’t think we can solve their problems.
“It’s about speaking the language of a really diverse customer base, and about having people within an organisation who reflect the society that we sit within.”
Language is a key factor, she says, in engaging younger clients – especially women.
“A lot of women approach me who have previously seen a financial adviser and left feeling overwhelmed, intimidated and really just confused,” Brady says. “I’d ask them what strategy their adviser put in place and they couldn’t articulate it to me. You could argue that it’s because the client has a low level of financial literacy, but you could also say that we need to do a much better job of using the right language so they understand the advice they’re getting.”
Fox and Hare has a much younger client base than the typical advice firm. Hare says the youngest client is 22, the oldest is 49, and the average client would be in their early 30s. Hare, himself, is 31 and Brady is 30.
Beyond age and gender
Hare stresses that diversity is about more than age and gender, saying ethnic and sexual diversity also need representation. The LGBTIQ (lesbian, gay, bisexual, transgender, intersex, queer) community, he notes, is emblematic of minority groups looking for open engagement with professionals with whom they feel comfortable.
“I’m part of the LGBTIQ community, and we have clients reach out to us because they feel comfortable talking to me, while they may not feel comfortable talking to someone who represents previous generations that may not have been as accepting of them,” Hare explains. “We don’t focus on them, but we do make it clear through our language and on our website that we service that community.”
