10 Oct Why I See A Glass Full of Opportunities
The real problem is that Financial Advisory has been positioned as a very esoteric profession requiring a deep understanding of markets, assets, ratios etc.
At some level practitioners themselves have tried hard to be seen as astrologers who can read the future.
However in doing so people have become speculative and we have lost the essence of investing.
I call this the market outlook culture.
But if the Advisor simplifies personal finance for the retail investor freeing it of jargon so that personal finance no longer is an enigma, the market will certainly open up and create volumes of investors vis a vis a few speculators.
Once the retail market opens up, the dynamics will completely change. The need for outsourcing itself will offer a huge market.
Our children study maths, science, history, geography etc; subjects which we all understand? But does that stop us from sending them to tuitions. Good tuition teachers are minting money.
We know driving but we need chauffeurs or Uber. We know cooking but we need cooks or restaurants. People no longer renovate their homes without consulting an architect.
Yes some people will go direct just like some people don’t send their kids for tuitions, just like some people don’t hire a chauffeur, just like some people don’t hire a cook or just like some people don’t go out to a restaurant or just like some people never order food.
But these are ‘some people’. Most act and behave otherwise.
Typically busy and successful people will always look to outsourcing and getting expert advice.
Financial Advisors can create the volumes and help unlocking this potential by educating.Margins will become thinner but volumes will compensate. There are several scale up technologies that can help is bringing down the cost of servicing and make business viable.
Today we are perhaps a market where at best about a crore people are investing. Clearly the scale up potential is very large.
The glass is full of opportunities.
I rest my case.
Dharmendra Satapathy at NextLevel-Education.