Times they are changing… but we don’t want to
Brokers in Cape Town, Johannesburg and Durban, were asked at a recent Sanlam Broker Summit how future ready they felt regarding how new technology can help grow their business and its effect on the future of financial planning. More than 50% of intermediaries felt that they were likely to try new digital onboarding platforms with clients.
When asked whether they were concerned about their futures in financial planning given the rise of digital developments, most said they were concerned, but hopeful. However, some indicated real concerns about the profession’s sustainability.
The theme for the conference was ‘Business agility in a VUCA world’. Times are changing, rapidly, but it’s a natural human response to resist change and keep doing what we’ve always done.
Petrie Marx, Product Actuary at Sanlam talked about enabling intermediaries for the future world of work and how tools like Sanlam Now Cover – which lets advisers onboard and provide cover to clients in just 15 minutes – improve productivity. Simultaneously, they satisfy the changing demands of digitally connected customers who expect to interact differently. Customers increasingly demand solutions that are simple, fast and effortless, yet personalised. These expectations are shaped, not by other life insurance experiences, but their experiences in other industries – notably other digital platforms.
So, why doesn’t everyone adopt this approach immediately? Speakers like behavioural economist Erik Vermeulen; columnist and editor-in-chief and publisher of Stuff, Toby Shapshak; and Jacques Coetzer, General Manager of Sanlam’s Broker Distribution, addressed human reactions to change and emerging tech trends.
Why we don’t like change
Toby Shapshak believes our resistance to change stems from nostalgia and how we’re wired. “Our brains are truly remarkable. Everything on this planet is the result of our forebrains. The problem is our brains respond to the environment and stimulus they’re in, and that environment has radically changed from 300 000 years ago when homo sapiens became the dominant species on the planet…our brains are configured for an environment that no longer exists.”
He added that ‘neurons that fire together, wire together’. The way we do things and think about things creates ‘pathways’ in the brain. These make it easier for us to handle similar circumstances – the way we’ve always done things – but not change. Which is a problem in a world that’s changing at pace.
Shapshak used the example of the wireless – a wireless radio to his grandfather; something else entirely to us today. “The pace of technological change now compared to ten years ago is amazing.” He added that young people use tech in completely different ways, which calls for brokers to communicate with them differently. “You must evolve to a point where you are interacting with your customer in the format the customer wants.”
How we can use ‘behavioural techonomics’ to effect change
Vermeulen said we don’t just need to accept change; we need to create it. “The easiest way to embrace change is to expect it, and when it happens, to accept it – because we can’t kick against it. Then, we need to create our own change. When I focus on behaviour and decision-making and start thinking about what I can do to create my own change to nudge my clients forward, then I become an agent of change rather than a victim of it.”
Vermeulen mentioned a few behavioural economics principles applicable to the broker space – and business, generally:
The importance of empathy. Why go to a doctor when you can often diagnose yourself via the web? Because you want face-to-face reassurance and empathy from someone you trust. Same goes for why clients seek relationships with brokers. Our need for connectedness won’t change.
Acknowledge we’re irrational. People are irrational and we make decisions based on emotions. It turns out we also don’t always know what we want. When Pepsi won a blind Coke vs Pepsi taste test, Coke launched ‘new Coke’, which flopped. Turns out, people wanted the ‘old’ Coke – they just didn’t know that’s what they wanted. Businesses are linked to emotions. The ‘likeability’ measurement is the most efficient prediction of sales. So, brokers need to build positive associations with their