Financial services businesses will have to reposition themselves as truly client-centric in order to survive the tougher investment markets and see significant improvement in performance, according to the chief of a financial services firm.
"We're determining value by referencing what the clients' values are rather than just transacting," Trust Company chief executive John Atkin said.
The company's personal client services business, which covers financial planning and wealth management, focused on the retiree sector as its competitive advantage.
"An aging population will drive demand for trans-generational wealth management services," Atkin said.
However, the company previously used a transactional and siloed approach to its clients, but had to change to a client needs-based offer, he said.
"Our management structure is also more localised. For example, Brisbane is looking after, and has total responsibility of, all of Brisbane's personal client needs, which frankly means less layers in management for more authority and empowerment going to the people that are actually dealing with the clients.
"That's very simple but there's a lot of benefit being gained off that," he said.
Atkin's comments come as the listed financial services firm reported its annual results.
The Trust Company released its financial year 2012 results yesterday, posting a 12 per cent increase in net profit after tax to $12.6 million for financial year 2012, ending 29 February 2012.
The company's funds under management (FUM) for its Australian personal client services business reached $3.2 billion, the figure dropping off from $3.4 billion in the previous financial year.
Combined with its New Zealand business, total Trust Company FUM for financial year 2012 reached $5.8 billion.
"FUM is a consequence rather than an end in itself, as I'm more interested in client satisfaction levels. FUM is a good measure of how you're doing that," he said.
The business overall, particularly in the personal client services division, will upgrade its business systems over the next three years, at a cost of $10 million, to enable business growth and transformation, he said.
"These are market-driven choices and we're deliberately prioritising the personal business ahead of corporate," Atkin said.
Confidence of long-term growth was driven by cross-border investment opportunities into Australia and New Zealand.
The result was enhanced by a full 12-month contribution from New Zealand Guardian Trust, which was acquired in March 2011.
