The demise of the British high street has been well documented in recent years, with independent shops such as butchers and greengrocers going to the wall amid stiff competition from large-scale supermarkets in out-of-town retail parks. Chain bars and coffee shops have replaced pubs and cafes that served the local community for decades and with them has gone some of the character that made each individual town unique. Take a snapshot of most modern high streets today and you could be almost anywhere in the UK.
But despite – and possibly because of – this homogenisation, communities are fighting back. Organisations such as Tesco and Starbucks are still making a pretty penny, but a growing number of customers are growing tired of one-stop shops riding roughshod over their local landscapes and have established ‘buy local’ initiatives in the interests of the local economy, consumer choice and the environment. The financial services sphere hasn’t been immune from this localised loyalty either, with local building societies and financial advisers benefitting from a sense of disenfranchisement towards the big banks that has grown since the start of the global financial crisis.
We may be a national group, but we have never lost sight of the importance of keeping things local. This is why our adviser firms can benefit from all the advantages of being part of an umbrella organisation, while still maintaining their own individual local brands and client relationships which got them where they are today. Customers have greater access to financial information and guidance than ever with the advent of comparison sites and search engines, but with increased options available, many customers are becoming more demanding and perhaps require greater assistance to navigate their way through the minefield. They are also likely to appreciate this advice coming from someone who understands the vagaries of the local economy, housing market and connections.
While some of this local expertise may only be applicable or relevant in the immediate areas, other knowledge can be transferable which is why we regularly bring our Principals together so they can share best practice. What works in one community won’t necessarily be a success in another, but it is a valuable exercise so that adviser firms can pick and choose the elements that may work best. We may offer our firms guidance in some areas and have a ‘group’ way of doing things, but we are also keenly aware that our adviser firms may have to tweak some directives to best suit their businesses on a local level.
Advances in technology have made the world something of a global village and this is certainly true for us on a national scale. Our adviser firms’ local knowledge and reputation delivers growth not just at an office level but for us as a group, while we are able to offer our firms economies of scale and support that they wouldn’t be party to if they hadn’t come under our auspices. Supermarkets and chain pubs won’t disappear overnight, but the continuing demand for local services and businesses is something that adviser firms can certainly capitalise on.
David Hesketh is group M&A manager at Perspective Financial Group
