Future of Advice: Don't be 'Closed-Minded' to New Business Models

Chanelle Pattinson joins Ollie Smith to discuss a different way of doing financial planning and advice 

Ollie Smith 7 July, 2022 | 8:39AM
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Ollie Smith: On stage today here at Morningstar Investment Conference UK 2022, I was asking my panelists about the future of financial advice. And one of them, Chanelle Pattinson, joins me now.

Chanelle, can I ask you about what it is that you find frustrating when it comes to talking about the future of financial advice? Is there too much pessimism?

Chanelle Pattinson: There is and also, people can be really close-minded, I think personally. I think they struggle to see what can be done and how it can be done and all the different things we can do because financial advice, financial planning has been done in the same way for such a long time with not a lot of changes at all, and that has always worked in most cases. And I always say that – I'm not saying what they're doing now is wrong. It works for their clients they have at the moment. But if they want to look at new clients and potentially younger players, they need to think slightly differently.

OS: And what is it about younger investors that's particularly attractive as a business opportunity? You were telling our audience that they make good money, and they need good advice. So, why is it that that's not happening, do you think?

CP: I think sometimes advice firms don't know how to deal with them. They're not sure they are making money. They're not sure how to have the most profitable clients. But I think sometimes they're a bit close-minded to the future. I think Ruth [Handcock] mentioned on the panel that actually now when companies get valued, they're looking at what their future books look like, have they got the kids involved, what age of their clients, and actually now that's getting really important. And if you're doing family planning and heritage tax planning like, you should be getting the kids involved and talking to them and preparing your business for the future.

OS: And how did you settle on the model for your new business Money Means? What was the thinking there?

CP: It took a lot of trial and error and speaking to people and working out what people wanted, how we could serve these clients, how we could work with them, how it could be profitable, because businesses don't exist, not make any money, but I was really keen to help these clients. So, it just took talking to people about what they wanted and then working out a way that it could be a profitable business.

OS: Cool. And for more on Morningstar Investment Conference UK 2022, check out our coverage on Morningstar.co.uk. Until next time, I've been Ollie Smith for Morningstar.

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Ollie Smith  is editor of Morningstar UK