A recent OCBC survey found that only 30 per cent of 1,000 respondents can sustain themselves for over six months if they were to lose their jobs now. That statistic points to a pressing need for good personal finance habits, made more urgent by the impending recession facing Singaporeans today.
"Advisers want to be where their customers are," says Daniel Lum, director of product and marketing at insurance firm Aviva Singapore. At AIA Singapore, the majority of its financial advisers are using social media platforms and messaging apps, which has become"the norm" to keep in touch with clients, says Wong Sze Keed, the firm's chief executive officer designate and chief distribution officer.
"One of our biggest problems in financial services is how to make such content emotive. If you were to ask people if they would sit down for an hour and talk about their retirement savings plan, or spend 30 minutes watching the latest series on Netflix, most would go for Netflix," says EY's Mr Wightman.
Some financial advisers also use social media to share client testimonials, publicise upcoming webinars, host giveaways, and tell personal stories to boost their street cred. "Through consistent engagement, customers feel more comfortable to open up to the advisers on their financial concerns," says Aviva's Mr Lum, noting that some of the firm's advisers have been successful to secure video appointments to complete new policy sales.But here's where it gets tricky. The marketing of financial products and solutions is unlike selling yoga pants online.
To be clear, licensed financial advisers are required to take several exams on rules and regulations, and product knowledge and analysis. This comes under the Financial Services Act by the Monetary Authority of Singapore . "Social media messages are typically short and sweet. The person pitching the idea or product has to understand it very well in order to convey the message accurately," says Chan Fook Leong, executive director of advocacy at CFA Society Singapore.
"You can't mass stream investment advice to everybody because their needs are very different, even if they belong to the same target segment," says EY's Mr Wightman. While some create separate social media accounts for work, others mash their finances talk with personal posts. The post had only shown the one-year returns of the fund. Checks by BT found that the fund is categorised as"higher risk, narrowly focused sector", which was not communicated.
"But most new investors do not have the time or capability to do their own extensive research, and turn to financial advisers extensively for help," he notes. Prudential's Mr Ng further tells BT:"We are advised not to offer our personal opinions when it comes to investment, even if we do investment on our own personal capacity."
Financial firms must also disclose to customers all information on an investment product, such as potential risks and benefits and fees. KPMG's Mr Chia adds:"MAS's regulations help to safeguard consumers when they actually want to buy something. What is needed is a bit more education; people should be aware of their rights, and the ways to avoid scams and to easily resolve disputes."Ultimately, consumers should do their own due diligence to protect themselves from bad purchases.
uno reverse pleaseletthisblowup