What is Tailored Financial Advice?
Tailored financial advice is to the financial services industry what Haute Couture is to women’s fashion and a bespoke suit is to men’s fashion.
To illustrate, let’s consider a suit. A suit can be bought for a man or a woman. It can be bought off the rack from a department store or it can be made to your own exacting specifications and body shape.
A suit from a department store is one of a thousand made to the specifications of various standardized sizes. If you’re very lucky, it might fit you. But if you’re like me, I’m one size for the jacket and in between sizes for the trousers. Further, depending on the brand, the in-between sizes can be different. It’s generally made in line with current fashion trends, and while often made from good quality fabric, the quality of the sewing can leave a fair amount to be desired.
And then what about the customer service? Sometimes you might find an assistant that knows something about the brand or the current fashion, but they certainly don’t know anything about you, your existing wardrobe or your lifestyle. Every now and again you might come across that type of assistant that tells you how great you look regardless of what you try on and you know they just want to make the sale.
The advantages of a department store suit are that it’s convenient, it’s often reasonably priced and there is no waiting.
A bespoke suit, on the other hand, is painstakingly measured and discussed to ensure that every aspect fits perfectly which means no two suits are ever alike. It is generally of classic design with particular modifications intended to suit your body type and lifestyle. The tailor will present swatches of fabric to complement your colouring and meet your budget. Depending on the tailor, there may be a staff of highly skilled workers dedicated to the specialist activities of design, pattern making, cutting and sewing. Or you might be extremely fortunate to work with a single craftsman skilled in every aspect of the process.
Either way, a bespoke suit takes time and is generally more expensive than its department store counterpart. But you can be assured that the fit will be perfect. Crafted to meet your every specification, it will stand the test of time and the ever-changing whims of the fickle fashion industry. Most importantly, you should feel confident you can face anything when you wear it.
So it is, with financial advice: you can buy specific products from banks, brokers and investment houses and they may meet your specifications. Like all department store shopping, it’s convenient, quick and appears a lower priced option.
Our world is that of currency risk management advice. So, our department stores are banks and non-bank FX providers where you can buy a variety of currency hedging products. Like all department stores, it’s quick, easy and convenient. In terms of the service, you will often find staff that know something about the products themselves and can outline their features and benefits, but may not be able to speak to their application for your specific circumstance.
Tailored currency risk management advice is crafted to meet the expectations and goals of each individual business and its management team. Time is taken to understand the principles on which the business is based, its growth trajectories and challenges as well as key goal performance measurement practices. It’s place within the industry and its competitive positioning are also important to the overall outcome.
While tailored financial advice might contain many of the hedging products available at banks, it’s the piecing together of each product that will build the final ensemble. It can only be delivered by highly skilled personnel, licensed to provide financial advice and ideally, with many years of experience in dealing with the specifics of currency market fluctuations and interaction with business owners and their financial staff.
Tailored financial advice of any kind takes time, skill and knowledge and can appear expensive at the beginning. It should, however, make you feel confident that you can focus on the internal workings of your business without concern about the risk of an unexpected financial markets surprise.
Like a bespoke suit, appropriately tailored financial advice will stand the test of time through constantly changing financial markets. It is able to be modified to your changing requirements, ensuring that your business goals and expectations will continue to be achieved over the long term.