The Financial Coaching Advice Model: An Exploration into how it Satisfies Expectations of Quality Advice

For 20 years, the financial planning sector in Australia has been transitioning from a sales-orientated force to aprofession of qualified and skilled practitioners. Today, the potential for professional financial planning adviceto benefit Australians financially, economically and psychologically is...

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Main Authors: Julie Knutsen, Robyn Cameron
Format: Article
Language:English
Published: University of Wollongong 2012-11-01
Series:Australasian Accounting, Business and Finance Journal
Subjects:
Online Access:http://ro.uow.edu.au/aabfj/vol6/iss4/3
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spelling doaj-3ffe2d94456a4b0a8a7e92ffb5f223252020-11-25T01:03:43ZengUniversity of WollongongAustralasian Accounting, Business and Finance Journal1834-20001834-20192012-11-01643145The Financial Coaching Advice Model: An Exploration into how it Satisfies Expectations of Quality AdviceJulie KnutsenRobyn CameronFor 20 years, the financial planning sector in Australia has been transitioning from a sales-orientated force to aprofession of qualified and skilled practitioners. Today, the potential for professional financial planning adviceto benefit Australians financially, economically and psychologically is recognised by government. Financially,these benefits include increased savings, less interest expense through faster debt reduction, higher investmentreturns and appropriate levels of insurance. Economically, a more financially literate society has the potentialfor less reliance on an already burdened social security system. Psychologically, the benefits include the peaceof mind that comes from an individual being confident in financial matters. However, despite this level ofrecognition and development, national surveys have reported that only a small percentage of the populationactually seek professional financial advice. The factors attributing to these low percentages included the gapsin financial literacy limiting an individual’s engagement in financial matters and consumer’s current mistrust ofthe financial advice business models that remain dominated by commission-driven product sales. Thesedeficiencies have led some financial planning firms to break from financial product sales as the primary advicemodel and focus on financial coaching. Exploratory interviews with the practitioners and clients of a selectedfinancial planning firm have generated insightful discussion into how a financial coaching advice model isachieving the financial, economic and psychological benefits recognised by government as the potentialoutcomes of professional financial advice. The aim of this paper is to present the findings from that discussionand demonstrate the opportunities embedded within a financial coaching advice model. It is argued that thisdiscussion offers a foundation for future research direction in an area currently under researched in academicliterature.http://ro.uow.edu.au/aabfj/vol6/iss4/3Professional financial planningfinancial advicefinancial coachingcognitive behavioural coachingquality advicegrounded theoryclient engagementcoaching
collection DOAJ
language English
format Article
sources DOAJ
author Julie Knutsen
Robyn Cameron
spellingShingle Julie Knutsen
Robyn Cameron
The Financial Coaching Advice Model: An Exploration into how it Satisfies Expectations of Quality Advice
Australasian Accounting, Business and Finance Journal
Professional financial planning
financial advice
financial coaching
cognitive behavioural coaching
quality advice
grounded theory
client engagement
coaching
author_facet Julie Knutsen
Robyn Cameron
author_sort Julie Knutsen
title The Financial Coaching Advice Model: An Exploration into how it Satisfies Expectations of Quality Advice
title_short The Financial Coaching Advice Model: An Exploration into how it Satisfies Expectations of Quality Advice
title_full The Financial Coaching Advice Model: An Exploration into how it Satisfies Expectations of Quality Advice
title_fullStr The Financial Coaching Advice Model: An Exploration into how it Satisfies Expectations of Quality Advice
title_full_unstemmed The Financial Coaching Advice Model: An Exploration into how it Satisfies Expectations of Quality Advice
title_sort financial coaching advice model: an exploration into how it satisfies expectations of quality advice
publisher University of Wollongong
series Australasian Accounting, Business and Finance Journal
issn 1834-2000
1834-2019
publishDate 2012-11-01
description For 20 years, the financial planning sector in Australia has been transitioning from a sales-orientated force to aprofession of qualified and skilled practitioners. Today, the potential for professional financial planning adviceto benefit Australians financially, economically and psychologically is recognised by government. Financially,these benefits include increased savings, less interest expense through faster debt reduction, higher investmentreturns and appropriate levels of insurance. Economically, a more financially literate society has the potentialfor less reliance on an already burdened social security system. Psychologically, the benefits include the peaceof mind that comes from an individual being confident in financial matters. However, despite this level ofrecognition and development, national surveys have reported that only a small percentage of the populationactually seek professional financial advice. The factors attributing to these low percentages included the gapsin financial literacy limiting an individual’s engagement in financial matters and consumer’s current mistrust ofthe financial advice business models that remain dominated by commission-driven product sales. Thesedeficiencies have led some financial planning firms to break from financial product sales as the primary advicemodel and focus on financial coaching. Exploratory interviews with the practitioners and clients of a selectedfinancial planning firm have generated insightful discussion into how a financial coaching advice model isachieving the financial, economic and psychological benefits recognised by government as the potentialoutcomes of professional financial advice. The aim of this paper is to present the findings from that discussionand demonstrate the opportunities embedded within a financial coaching advice model. It is argued that thisdiscussion offers a foundation for future research direction in an area currently under researched in academicliterature.
topic Professional financial planning
financial advice
financial coaching
cognitive behavioural coaching
quality advice
grounded theory
client engagement
coaching
url http://ro.uow.edu.au/aabfj/vol6/iss4/3
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