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Article
Publication date: 9 May 2008

John Gaskell and John Ashton

Against the backdrop of the Financial Services Authority's Retail Distribution Review, this study aims to present an assessment of the potential development of a UK…

Abstract

Purpose

Against the backdrop of the Financial Services Authority's Retail Distribution Review, this study aims to present an assessment of the potential development of a UK personal financial advising profession. The development of a profession dedicated to providing financial advice is critically discussed by assessing a range of regulatory and industry views.

Design/methodology/approach

The study indicates both a critical literature review and survey of retail financial services planning advisors. The critical literature review considers the market failures which surround the provision of financial planning advice in the UK. A survey of professionally qualified personal financial planning advisers ascertains perceptions of developments to the current regulatory framework to accommodate a more professionally based system of financial advice.

Findings

It is reported that a conflict between the current regulatory system and the traditional liberal model of the professions exist. This conflict inhibits the development of a financial services advising profession. Survey evidence collected from professionally qualified financial planning advisors bears out this perspective.

Research limitations/implications

Two key research implications emerge from this study. First, the development of a professional model of financial planning advising appears to be inhibited by the current regulatory system. Secondly, current regulation of financial services sales through a market mechanism appears to limit access to financial planning advice.

Practical implications

The study raises two key practical implications. First, the current system of regulating financial sales, appears to exclude a substantial segment of the population from access to professional financial planning services. Secondly, the development of a profession and increasing professional behaviour in retail financial services sales conflicts with the current model of regulation.

Originality/value

This research paper both reviews the wider arguments surrounding the regulation of retail financial services sales and forwards new evidence as to the attitudes of professionally qualified financial advisors towards regulatory change. This has importance in clarifying a number of the key policy concerns in the regulation of financial services sales.

Details

Journal of Financial Regulation and Compliance, vol. 16 no. 2
Type: Research Article
ISSN: 1358-1988

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Article
Publication date: 5 June 2017

Meysam Safari, Shaheen Mansori and Stephen Sesaiah

The purpose of this paper is to document a gap between generation X and Y’s behavior toward decision making for hiring a professional financial planner in context of an…

Abstract

Purpose

The purpose of this paper is to document a gap between generation X and Y’s behavior toward decision making for hiring a professional financial planner in context of an emerging country.

Design/methodology/approach

This research is based on a public survey in Malaysia on the effect of five major contributing factors (namely, awareness, acceptability, affordability, accessibility and assurance) on the decision to hire a professional financial planner. The study further shed light into the difference among the influential factors among generation X and Y.

Findings

Although awareness, acceptability, affordability and assurance have demonstrated significant effect on decision making in general, their impact varies among different age groups. Results of moderation tests on the role of age suggest that for Gen X, the determinant factor is only their acceptability of the financial planning service. However, awareness, affordability, acceptability and assurance are critical factors for Gen Y respondents. In contrast to Gen Y, the Gen X respondents tend to have more awareness toward their needs for financial planning; they have gained enough experience to assess the credibility of the planner and test their assurance; and have higher earnings to afford the financial planners services.

Originality/value

Findings of this study are novel as it provide first hand picture from an emerging market in South-East Asia. Moreover, the study documents generation gap in financial decision making process.

Details

International Journal of Bank Marketing, vol. 35 no. 4
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 1 May 1990

Kenneth Andrew

This monograph covers a number of key articlesand presentations by the author over the lastdecade. The points contained in them reflect aclear belief based on experience…

Abstract

This monograph covers a number of key articles and presentations by the author over the last decade. The points contained in them reflect a clear belief based on experience of creating significant cultural change so that banks become more market‐driven and customer‐orientated. Many of the forecasts made in the articles have become a reality in the marketplace. This monograph begins with a description of changes over the last decade: the introduction of the marketing function into banks, consumer responses, new competitors, technological developments, and the impact of Government. Marketing has faced many difficulties in the banking industry and competitive breakthroughs have not been easy to achieve. Many leaders in the industry believe in business/marketing strategy evolving in close association with IT planning – this is the second topic, IT support may be crucial. The importance of advertising and management of agency relationships is the subject of Chapter 3 – how can it be effectively used? Chapter 4 looks at the ways in which the consumer is presently getting a better deal; Chapter 5 describes the marketing success of the NatWest Piggy Bank within the context of a changing marketing culture. A wider repertoire of marketing techniques are used in the USA (Chapter 6) but if they are to be used in the same way here then the situation will need to approximate more closely to that of the USA – credit and credit cards are the particular focus and the US market is more aggressive. Chapters 7‐9 look at the future of financial services marketing from the retailer′s perspective – the retailer′s detailed approach to a possible new business has distinctive strengths, but their actual opportunities in this market may be restricted to an extent by, for example, inexperience and so lower credibility as vendors of some specialised services like investment management. Chapter 10 appraises the value and strategic nature of market research. Chapter 11 considers the movement of building societies into the wider personal financial services marketplace, the product′s role in the marketing mix, and the impact of the Single Market in Europe. Chapter 12 singles out the cost‐effective technique of automated vetting of customers′ creditworthiness from the special viewpoint of the building society. The monograph concludes with a discussion of the changing market and future prospects: the world of finance is no longer simple; money is no longer the common denominator; the consumer is now the focus; competition to provide services is fierce; the future is exciting!

Details

International Journal of Bank Marketing, vol. 8 no. 5
Type: Research Article
ISSN: 0265-2323

Keywords

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Book part
Publication date: 31 December 2010

The following is an introductory profile of the fastest growing firms over the three-year period of the study listed by corporate reputation ranking order. The business…

Abstract

The following is an introductory profile of the fastest growing firms over the three-year period of the study listed by corporate reputation ranking order. The business activities in which the firms are engaged are outlined to provide background information for the reader.

Details

Reputation Building, Website Disclosure and the Case of Intellectual Capital
Type: Book
ISBN: 978-0-85724-506-9

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Article
Publication date: 28 June 2021

Daniel W. Richards and Maryam Safari

Scandals in the Australian financial services industry highlight the conflicts of interest between those who provide financial advice (financial planners) and their…

Abstract

Purpose

Scandals in the Australian financial services industry highlight the conflicts of interest between those who provide financial advice (financial planners) and their clients. Disclosure is a potential governance tool to manage these conflicts of interest by reducing asymmetries in information. Yet, the efficacy of disclosure is questionable as scandals persist, so this paper aims to research the effectiveness of disclosure in financial planning.

Design/methodology/approach

This research used a qualitative approach involving the triangulation of data from parliamentary inquiries in financial services with data collected in semi-structured interviews with financial planning professionals.

Findings

The findings draw a clear portrayal of the disclosure requirements and illustrate how disclosure processes are onerous and complex. Starting with detangling the complex interactions between the beneficial role of disclosure in reducing information asymmetry and unethical behaviour and the detrimental effect of information overload, the authors then highlight effective disclosure techniques used by financial planners, including visualisation of material information. The study reveals that financial planners perceive their role as filtering information for clients and ensuring clients’ comprehension, due to the onerous disclosure requirements.

Research limitations/implications

The study is of interest to researchers, practitioners, policymakers and society as it implies that how disclosure occurs is as important as what information is disclosed. Those who wish to foster effective disclosure in the financial services industry need to consider the quantity, quality and process of disclosure. A limitation is the research focusses on financial planning practices and not client outcomes, which could be considered in future research.

Originality/value

The study adds to the understanding of how disclosure is used as a governance tool and how the quantity of information may impede the effectiveness of disclosure in the financial planning industry. In addition, the study identifies and elaborates on the influential factors and best practices for enhancing the disclosure effectiveness by financial planners.

Details

Qualitative Research in Financial Markets, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1755-4179

Keywords

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Article
Publication date: 20 June 2016

Habib Ahmed and Ak Md Hasnol Alwee Pg Md Salleh

This paper aims to develop a conceptual framework of inclusive Islamic financial planning (IFP) by combining the traditional Islamic institutions of zakat and awqaf with…

Abstract

Purpose

This paper aims to develop a conceptual framework of inclusive Islamic financial planning (IFP) by combining the traditional Islamic institutions of zakat and awqaf with contemporary notions of financial planning, financial inclusion and financial literacy that caters to the short-term and long-term financial goals of the poor.

Design/methodology/approach

Being a conceptual article, an inclusive IFP framework is described, analyzed and developed by integrating modern notions of financial inclusion, financial planning and financial literacy with the concepts of zakat and awqaf.

Findings

Using the notion of a hierarchy of needs and a financial planning model, an inclusive IFP framework that can be used by the poor is outlined. The complementary role of the non-poor households who provide funds for zakat and awqaf is also identified.

Research limitations/implications

The applicability of an inclusive IFP would require Islamic financial instruments and products, institutional development and existence of a social planner who can integrate zakat, awqaf and financial planning to serve the financial needs of the poor.

Social implications

Application of an inclusive IFP that can mitigate poverty would necessitate integrating financial planning skills and knowledge with traditional institutions of zakat and awqaf to provide holistic financial advice and services to the poor households.

Originality/value

Discussion of financial planning in financial inclusion literature is scant. The paper explores and offers a novel approach of poverty mitigation by utilizing the full spectrum of IFP that considers the financial needs and allows for the creation of a personalized financial plan for low-income households.

Details

International Journal of Islamic and Middle Eastern Finance and Management, vol. 9 no. 2
Type: Research Article
ISSN: 1753-8394

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Article
Publication date: 14 September 2015

Carolin Plewa, Jillian C. Sweeney and David Michayluk

The purpose of this paper is to capture the richness of customer perceived value by determining its benefit and cost dimensions in a complex service setting. Perceived…

Abstract

Purpose

The purpose of this paper is to capture the richness of customer perceived value by determining its benefit and cost dimensions in a complex service setting. Perceived value is argued as equivalent to value-in-use; that is value that emerges for or is created by the customer.

Design/methodology/approach

A series of in-depth interviews was conducted with a diverse group of clients of financial planning services as well as with financial planners in Australia.

Findings

Six benefit and four cost dimensions of complex service are identified, namely expertise, education, motivation, support, relationship and convenience benefits, as well as monetary, time and effort, emotional and lifestyle costs. The results also indicate proposed outcomes of these dimensions, along with relevant moderators, leading to a broad conceptual framework for future empirical validation.

Originality/value

This study contributes to the sparse conceptual development of value perceptions, or value-in-use, in a complex service context. In particular, the authors identify the benefit and cost dimensions, specifically addressing aspects of value that are linked to the long-term relationship between provider and customer. The authors also develop a conceptual model of value, including both outcomes and situational moderators of the various value dimensions. Finally, the conceptualization of perceived value is discussed with respect to the value co-creation literature.

Details

Journal of Service Theory and Practice, vol. 25 no. 5
Type: Research Article
ISSN: 2055-6225

Keywords

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Article
Publication date: 1 January 1986

Carla B. Furlong and J.R. Brent Ritchie

Financial services have entered a new era in which distinctions between different services have become blurred. Consumers are now faced with numerous combinations of…

Abstract

Financial services have entered a new era in which distinctions between different services have become blurred. Consumers are now faced with numerous combinations of products and services. Many professionals feel that there is a need for financial counselling services. This study uses a sample of 139 corporate employees in Canada. It reveals that “convenience” in the choice of a supplier of financial services is not as important as the supplier's expertise. The most important benefit of FCS is family protection. The benefit of a counsellor is the opportunity to gain advice on the advantages and disadvantages of available investment options. Over 50 per cent of the sample indicate they would use an FCS, yet many are unfamiliar with the concept of overall financial planning and the use of counsellors. Most would prefer their counsellor to be from the accounting profession, in the role of a “contractor” where one expert is employed but relies on the expertise and products of a network of other counsellors. Although the population used does not accurately reflect the general population, it does represent an important share of the market, and as such it does cast some doubt on certain assumptions which have often been accepted as self‐evident.

Details

International Journal of Bank Marketing, vol. 4 no. 1
Type: Research Article
ISSN: 0265-2323

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Article
Publication date: 30 May 2018

Suri Weisfeld-Spolter, Fiona Sussan, Cindy Rippé and Stephen Gould

Debt is at a peak and consumers purport needing help with financial planning. To better understand the antecedents of financial planning behavior, the purpose of this…

Abstract

Purpose

Debt is at a peak and consumers purport needing help with financial planning. To better understand the antecedents of financial planning behavior, the purpose of this paper is to examine the importance of cultural values in financial decision making within the context of Hispanic American consumers. A new conceptual model is proposed to integrate affect (cultural value) and cognition (financial knowledge) in financial planning.

Design/methodology/approach

To uncover respondents’ views on cultural values, financial knowledge, financial attitude, and financial planning behavior, an online survey hosted on a business school’s website was distributed to members of two Hispanic Chambers of Commerce. The survey consisted of five parts, and took each respondent an average of 15 minutes to complete. The final data set has 158 observations.

Findings

Results analyzed using structural equation modeling confirmed the hypotheses that financial knowledge, attitude, and perceived control simultaneously influence Hispanic consumers’ intentions to purchase financial planning products or services. More interestingly, these results confirm that multiple different routes coexist in the decision-making process, especially within the Hispanic financial planning context.

Originality/value

Key contributions of this paper include the conceptualization of cultural value as an antecedent to Hispanic financial behavior; detailing the different routes to financial decision making for US Hispanic consumers; and informing financial service managers on marketing strategies toward Hispanic consumers.

Details

International Journal of Bank Marketing, vol. 36 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

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Article
Publication date: 1 July 2001

Paraskevas C. Argouslidis and Fiona McLean

Reports on part of the findings of a broader exploratory investigation into the service elimination decision making behaviour in the UK financial services sector. The…

Abstract

Reports on part of the findings of a broader exploratory investigation into the service elimination decision making behaviour in the UK financial services sector. The issues tackled in this paper are: the degree of planning for the service elimination decision‐making process; the formality of service elimination procedures; the place of service elimination within the broader range of service range management activities; and the relative importance of the process of service elimination compared to the process of new service development (NSD). The empirical evidence from 20 in‐depth interviews with marketing directors and managers suggests that UK financial institutions: do not always follow a planned service elimination decision‐making process; have largely informal service elimination procedures; tend to see service elimination activities as ad hoc rather than as a part of service range management activities; and favour the process of NSD considerably more than the process of service elimination. Concludes by discussing the theoretical and practical implications of the findings and by suggesting future research directions.

Details

International Journal of Bank Marketing, vol. 19 no. 4
Type: Research Article
ISSN: 0265-2323

Keywords

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