Happy National Fiduciary Day! Or not?

For those living under a rock, there was a big ruling last week regarding the Department of Labor’s Fiduciary Rule. You can read all about it here.

Since I’m in no way qualified to discuss the technical merits of the Fifth Circuit’s decision, you’re safe. This isn’t another article about the regulations themselves – or the possible Supreme Court showdown between the Fifth Circuit ruling and the Tenth Circuit’s opposite view of the rule.

This is about trust.

We, the financial services industry, already have a bad rap. Each year Edelman – a global marketing and communication firm steeped in helping their clients create lasting trust with their communities – studies the tides of trust in the world. And each year, for the last ten years, the financial services industry has been the LEAST trusted of the bunch. 😢

Let’s not even discuss Millennial’s distrust of Wall Street.

If I understand the issue correctly, the product distribution folks see a bright line between sales people and advisors. Bottom line: Sales conversations are sales conversations only, and do not contain the trust and confidence of an advisory discussion.

What? We’re selling Americans financial products, solutions and services every day. If you ask me, when it comes to money and financial security, trust is an essential part of every conversation.

This is about authenticity.

Imagine, if trust is gone, then what? Interestingly these same organizations that wish to steer clear of trust and confidence still pursue branding and marketing messages that that point toward fiduciary-ish relationships. So now we say one thing and do another? That’s not gonna work in our hyper-connected, social media-savvy Age of Authenticity; they’ll just head on over to Google for something Better(ment).

This is about opportunity.

No matter. Even if the some organizations want to tuck fiduciary away, it’s there. If John Oliver did a piece on the subject, the memes of a client’s best interest and fiduciary will not disappear.

I remember being a 401(k) sales person back in the early 2000s. (Would I be a fiduciary now?) Anywhoo…the organization I worked for was quite skeptical of ESOPs, as many organizations were/are. My thought? Run toward ESOPs! Don’t be scared. Be different. Be valuable. Be really good. And charge for it. Ditto for fiduciaries. Be different. Be valuable. Be really good. Be a fiduciary! And, charge for it.

So, Happy National Fiduciary Day! We have millions of Americans to help; we need you.

FYI: Michael Kitces, this is entirely your fault! Your fantastic article about the ruling and the surrounding issues was extraordinarily helpful. Thank you!

The Trouble with Turtles

We all know the financial services industry moves a bit slowly. We say that with regularity. Somehow we seem to think that being risk-averse and moving slowly is fine. (Then there’s compliance, which intensifies our turtle-like approach.)

But this slow pace isn’t gonna work as the most connected, personalized, multidimensional generation steps into leadership roles.

Since day one, Millennials have had a remote control, a microwave, cable, computers. Not to mention the younger members and their own cell phones. Whether they’re Millennials or Xennials—Gen X/Millennial hybrids—they’ve seen their access to technology, flexibility, speed and control compound every year. And they’ve grown to expect it. No more checking a smart phone for the weather, just ask Alexa.

Since day one, Millennials have also been given choices: “Do you want to wear your blue shoes or your red ones today?” (We were told choice eliminated the morning-shoe meltdown.) “Do you want to play soccer or softball? Or both?”

This is a whole new world, and we have to change the way we market to this generation. We have to change the products we offer and the messages we send. Even the way we depict the American Dream.

The slow, one-size-fits-all approach we’ve taken in financial services just won’t fly with Millennials. We have to provide efficiency, convenience, choices, innovation, personalization, with a splash of color. Millennials believe they can have whatever, whenever, however they want.

Then they encounter the turtles in financial services.

How’s that gonna work?

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Don’t get me wrong about compliance. I know and respect their efforts. At times I’ve shared my love for them. (I couldn’t do their job.) We all must work within our industry’s guidelines. I get that.

But I can’t help but think about the Fosbury Flop. (Stay with me for a second.)

Dick Fosbury had challenges with the high-jump in high school. He was unable to compete with the scissor-kick, the straddle or the belly-roll. Then he invented the Flop. “The advantage,” he said, “from a physics standpoint is, it allows the jumper to run at the bar with more speed and, with the arch in your back, you could actually clear the bar and keep your center of gravity at or below the bar. It was much more efficient.”

The Flop looked very strange at the time. Track coaches were worried as young athletes began to imitate Dick’s Olympic Gold-winning moves; afraid their athletes would break their necks. Then it stuck.

Now the standard is the Flop.

No one did it, because no one did it. Until they did.

Now, think about the four-minute mile. No one did it, because no one did it. Until they did.

That’s the trouble with 🐢. They aren’t engineered to Flop. Yet.

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I recently joined Ed Kless, host of the Sage Advice Podcast, to talk about all things digital marketing. (Well, an eight-minute dive into digital marketing.) Listen in!