Consumer trust isn’t something to be taken for granted, but reports from the UK, US and here at home are all pointing towards an uplift in trust levels around financial advice, which can only be a welcome development.
There are significant tailwinds behind the financial advice industry at the moment, but some major obstacles are still preventing advice practices from taking advantage of surging demand according to a new study from CFS.
Akambo bulks up via merger with First Financial
Following on from the Banking Royal Commission of 2017-18, the growing popularity of boutique independent financial advisers has grown consistently, with clients seeing value in advisers that are building strong personal relationships and providing a consistent high-quality service to their clients.
Boutique advisory firms typically have a niche area of expertise where they can differentiate products or services rather than having a one-size-fits-all approach like the big banks.
It has triggered mergers among boutique independent financial adviser (IFA) firms to form a truly independent advisory firm for the full IFA service. Last week, Akambo Financial Group and First Financial announced plans to merge business operations to create an “industry-leading financial services provider” with a singular focus on providing clients with the best advice experience.
The deal comes at an opportune time, when Australians look to be seeking out independent practices for adaptability in solutions and attractive fees. Commenting on the deal, Akambo says it “has a strong pedigree in providing clients with strategic financial advice, and market leading investment solutions which is further supported by their team of specialists. First Financial also have an established heritage in providing clients with the highest quality service, in financial services and have been in the industry for over 30 years.
“By bringing our two firms together we can complement and create size and scale that will allow for increased efficiency, the ability to attract and retain the best talent, improved technology and most importantly, provide the best client experience possible within the wealth management industry,” says Akambo.
There is the potential for more M&A deals across the IFA space over the next few years as margin pressures start to bite and clients seek-out advisers who can better meet their evolving needs using the latest technology. Competition is heating-up and wealth managers will need to continuously raise the bar when it comes to satisfying client demands.
Although Akambo Financial Group and First Financial will merge, they both will operate as standalone entities, with changes in the form of back-office and operational synergies only.
