What does modern financial planning mean to you?

FTAdviser In Focus has asked four financial planners for their views on what a modern practice means to them.

They are all part of a community of professionals called NextGen Planners, whose aim it is to "foster innovation in financial planning and build a better profession".

Here is what they think a modern financial planning business looks like and what needs to change to make this a reality.

Jon Doyle, founder and financial planner at Juniper Wealth Management

For Doyle, a modern financial planning business is a "vibrant, energetic and cohesive team" that uses technology to create effective and efficient planning experiences for its clients.

We need more small and medium firms who are willing to invest in their people and develop the next generation of financial planners.

"While the client-adviser relationship will always be fundamental, a modern planning business will involve the whole team in delivery of the advice process and integrate technology throughout the process," he says.

But what's the big change? "We need more small and medium firms who are willing to invest in their people and develop the next generation of financial planners," he says. This is why, to celebrate its fourth birthday in October, his firm is preparing to take on its first associate trainee adviser.

Laura Pearson, director and chartered financial planner at Storeton Rose

For Pearson, a modern financial planning business is also one that utilises different technology. This allows it to engage with a range of clients and do so "in the format that the individual client prefers and which fits with the client's lifestyle."

Without supporting entrepreneurs both financially and non-financially to lead change in our industry, our industry will not change and move forward at the pace at which it needs to.

But in order to see more such financial planning businesses, the funding and support for younger people to set up their own firms has to improve, she says.

"New start-up businesses in other industries receive grants, loans and support for setting up and for taking on new employees, yet financial planning businesses sit outside eligibility for this support in most scenarios," adds Pearson.

"This lack of investment and funding coupled with rising, variable and unpredictable costs of professional indemnity insurance make it difficult for talented people in the industry to set up their own independent firms and often [they] are forced to take employed jobs or set up firms in restricted environments where they are not able to be innovative or different."

She says those who do manage to get through the financial hurdles often find themselves without sufficient backing from the regulator and unable to get mentorship from experienced planners and business owners, which means they give up and go back to the restricted environments that do not allow them to lead change.

"Without supporting entrepreneurs both financially and non-financially to lead change in our industry, our industry will not change and move forward at the pace at which it needs to."

Adam Downes, director at Pura Vida Financial Planning

"I believe the single biggest factor which will separate the businesses of the past and the progressive businesses of the future is the environment created for those working in these businesses," says Downes.

The firms of the future will be focused on improving the quality of their clients and their team members.

"Many will argue the profession has been transformed over the past decade from being product focused to client focused.

"Right now, I believe the best financial planning firms focus on improving the quality of life of their clients."

He says the firms of the future will be "focused on improving the quality of their clients and their team members."

"What if we start to ask how [our team members] truly want to spend their time now and in the future? What if personal development plans are linked to the things which really matter in their lives?

"Perhaps, the modern financial planning business is a place where everyone involved with the business can live out their dreams and not just the clients and shareholders."

Nicola Coates, owner of 56 Wealth

For Coates, a modern financial planning business is built around service, whereby the adviser is paid a fee by the client to act as their accountability partner, to educate and guide them and provide solutions.

We need to get better at looking outside of ourselves, at moving onto platforms where our future clients spend their time.

"Geography for them is no longer a limitation as technology enables greater efficiency and more opportunity for human interaction, for instance via video calls and online chat.

"Financial planning firms can specialise and have greater reach. Offering a selection of more affordable services and solutions means we can engage with a wider range of clients."

But change is needed to make this a reality, she says. "We need to bring financial planning into education so that young people leave school with the basic knowledge and skills needed to budget, understand investment and the impact of potential decisions."

She says financial planning is a "wonderful thing" that could benefit many people, "if only they knew about it". 

"We need to get better at looking outside of ourselves, at moving onto platforms where our future clients spend their time, build and engage with communities so we can create and grow awareness of the huge, often life-changing, value that financial planning can bring.

"In terms of technology, we need to understand the huge difference technology can bring to our businesses, rather than be afraid of it, work with it and use it to improve and enhance our services to our clients."

carmen.reichman@ft.com