Strict regulations, contracted margins and digitalisation lead to a considerable shift in the world of investment advisory.

Customer preferences are increasingly expanding, and the current evolution of advice must take it into deep consideration, in terms of providing services that up until recently were thought to be unnecessary.

In the fast few years financial advisors have been focusing their efforts on investment advice only – let’s take for example portfolio allocation – and did their best to provide clients with superior investment returns delivered for them. On present day, it appears not to be enough anymore. Over time, wealth management firms have gained equal access to the same products, tools and models to the point that there’s no sight of any differentiating element that could make them stand out. More and more customers are demanding services having a direct impact on their very personal objectives, meaning those services that are strictly linked to healthcare, life events, lifestyle enhancement, leisure etc., just to name a few, and not just insurance. As a consequence, they need advice on how to capitalise on these goals in the long-term.

In light of the above scenario, today there is a new phenomenon increasingly making its way, that we refer to as Holistic Advisory and consider as the key tool bringing added value to both clients and banks. Yet, if we all know what a traditional advisory model is, what exactly is a holistic advisory approach?
A holistic advisory model is a comprehensive, integrated, goal-based approach that works on clients’ objectives, considering assets, expenses and liabilities, time horizons and income requirements in order to tailor a strategy purposely designed to reach clients’ goals.
Betting on this model already guarantees banks a stronger and long-lasting client relationship, in increases customer loyalty, ensures higher market penetration, new money growth and leads to the acquisition of new clients.

On the other hand, clients benefit from customised solutions that meet their individual circumstances and an appropriate financial plan that reaches their life goals (both personal and business); also, they take the advantage of long-term returns, reduced investment risk and management of wealth transfer.

Nonetheless, holistic advisory is wrong to be thought as a brand new approach. First implemented in the US, Asia and in the UK, it is currently expanding its horizon in the western country.

What is for sure is that in an increasingly complex environment, those who adopt a holistic approach to advisory, financial planning and financial services, believe a comprehensive experience to be the way for clients to receive the greatest value from financial planning process.