The team at Fram have been recruiting for wealth managers since 2007. The industry has changed in many ways, but actually not as much as people thought it may do. For much of that time, there’s been a huge focus on fees and charges, and value for money. Of course, some of this is regulation driven and a great deal of it marketing focused, as firms vie for a differentiator. A lack of margin has been one of the reasons behind consolidation, however, at some point, firms need to stop competing on price and to focus on value.

Within pockets of the industry “financial coaching” is seen as the future of wealth management and one in many ways we’d endorse at Fram. Financial coaching for us is  where the focus extends beyond investment portfolios and encompasses accountability, structure, budgeting, and the integration of well-being with sound finances. It’s also easier to sell to clients, as it’s a value added service and not one that competes on price alone.

We all know what exercises we should be doing at the gym, perhaps not in the right order, but a huge reason many succeed with a personal trainer is the accountability element of the partnership. Financial coaching recognises that accountability is the cornerstone of success on any financial journey. By working with a financial coach, individuals gain an invaluable support system that keeps them on track, sets goals, and provides guidance throughout their financial endeavours. This level of accountability helps individuals develop healthy financial habits, promotes discipline, and ensures that actions align with long-term financial objectives.

As we’ve mentioned, wealth management is no longer confined to investment strategies alone. Financial coaching emphasises the importance of building a solid structure for overall financial success. Through a structured approach, individuals gain clarity on their financial goals, establish a roadmap for achievement, and develop personalised plans that encompass budgeting, debt management, tax planning, and estate planning. By creating a robust framework, financial coaching paves the way for sustainable wealth creation and preservation.

Budgeting lies at the core of financial coaching. It empowers individuals to take control of their cash flow, make informed spending decisions, and cultivate healthy financial habits. Financial coaches work closely with their clients to create realistic budgets, track expenses, and identify areas for improvement. By aligning spending patterns with long-term goals, individuals can make conscious choices that contribute to their financial well-being, paving the way for increased savings, reduced debt, and improved financial security.

Recognising the interdependence of physical, mental, and financial well-being, financial coaching takes a holistic approach to wealth management. Coaches help clients understand the connection between their overall well-being and financial decisions. By addressing the emotional and psychological factors that influence financial behaviours, individuals can develop a healthier relationship with money. This integration of well-being and finances promotes financial resilience, reduces stress, and cultivates a sense of financial peace and security. Without your health, you can argue that you really aren’t wealth at all. Equally, for years wealth managers have been far more than just investment advisers. They coach clients through life events like divorce, wealth transfer, and bereavement. Formalising this relationship with well-being qualifications will make for a better customer experience.

With continued advances in tech, it is inevitable that platforms will continue to develop to make the melding of financial coaching and well-being much easier. I think for many, peace of mind, health, and sound investments, is something they’d be willing to pay a premium for.