Financial services franchises are an attractive proposition for many investors, because when you think about it, most of our lives are touched by this industry.
The financial industry manages our wealth and financial security.
Not only that, but it is also a source of employment for over 400,000 people who live in Australia.
Here are some facts and trends about the financial services industry that might interest you.
- Many Australians hold products with more than one financial institution.
- A study from KPMG stated that 28 percent of millennials hold products with three or more financial institutions.
- That same study showed half of millennials surveyed had plans for entrepreneurial pursuits in the future.
- There is a huge digital transformation trend happening in the financial services industry. Mobile banking, mobile pay, mobile apps, blockchain and automated wealth managers being just some of the areas that are being impacted by the digital revolution.
- The financial services industry is hugely varied, from franchises that offer debt collection services, to franchises that help businesses assess where they can reduce cost. And that is just to touch on two types of businesses that exist within the industry.
- According to IBISWorld, the Australian accounting industry brings in revenue of $20bn per year, with around 130,000 people employed in the sector. It is a valued part of the Australian economy, which touches on every other industry.
- There are several different revenue streams within the industry. More and more firms are diversifying, with over 40 percent of accounting companies looking to either start offering financial planning and wealth management services or build upon existing services in this area.
- The influence of financial firms on the overall economy of Australia is massive and this is reflected in the ample opportunities and demand for their work which currently exists.
- In 2021, there were 281,300 people working in the accounting and bookkeeping industry alone. Over half of these people were accountants and about 15 percent of them were bookkeepers. If you are one of them and want to be your own boss, then considering a franchise could be the right move for you.
- Even with issues that went with the Covid-19 pandemic, research has shown that the pandemic was not entirely a bad thing for the financial services industry. Findings from Xero illustrated this. They read: “Over 90% of advisers surveyed reported at least one positive impact from the pandemic. This included embracing new ways of working, offering new services, and changing client attitudes to technological adoption”.
- The debt collection industry is part of financial services and according to IBISWorld, in 2022 its revenue is worth $1.4bn in Australia in 2022.
The skills you need to succeed in the financial services industry are as varied as the opportunities themselves.
Below are just some of the characteristics of people who have found success in this sector.
Self-motivated
When you are working for yourself, you have to have a certain degree of ‘get up and go’. In the financial services industry, you will be helping clients and assisting them achieve their goals.
Therefore, the ability to be self-motivated and organise and prioritise your workflow is vital.
A great communicator
A common denominator for success in this industry is quality communication. If you want to advise your clients on issues around money and their business, then you need to be excellent in this area.
Communication is an underrated skill in business, but it is one that can help you reach the levels you want to reach as an entrepreneur.
A natural leader
The ability to make the right choices at the right time can lead to success in the financial services sector. If you have always been considered a natural leader and have a cool head under pressure, then this could be the industry for you.
An experienced industry professional
There are franchises that provide investors will full training. However, you should also note that some knowledge of the industry or sector will always be useful.
The advantages for choosing a franchise, over going independently, are plentiful.
The urge to help people
If you are successful in this industry, there is a good chance that you will be helping other people and other businesses.
They include:
- Brand recognition: Generally, when people are seeking financial service offerings, they want to go with a name they know and trust. There are franchises that already have the public’s trust and when you invest in one of those, you are getting a head-start on competition.
- Existing systems: Franchises often offer existing systems that have been used and are proven. When you start off on your own, without going down the franchise route, you do not get these systems and you have to carve out your own way. This can be difficult for entrepreneurs who are new to business.
- Ongoing support and training: Some franchises offer ongoing support and training, which can make the early days of franchise ownership run much smoother. It is also useful for when you have questions, as there are others who have gone through the process you are going through.
- Franchise territories: Some franchises offer exclusive territories, which is useful for your business as the amount of direct competitors in the area is limited.