Many businesses in the financial industry involve managing clients’ funds, for whatever purpose. You might be an accountant, a property investment manager or perhaps an insurance agent. Having responsibility for other people’s money means that you have to make sound decisions. You need to protect their assets and deliver the high standards of service that they expect. Even if you think that you and your company do this job well, there is always room to improve. You may have many accounts to manage, and you need to produce results for each one. To improve your management of your clients’ money, you should be doing these things.
Follow the Rules
The financial sector must follow many regulations. Companies need to adhere to them to show they are ethical and operating legally. The regulatory authorities who can enforce these rules are particularly harsh on financial businesses. They can hand out large fines to anyone not fulfilling their obligations. Not only that, but any mistakes could lead to damage to your reputation or closure of your services. Some cases could even end up with board members serving jail time for failure to comply with the regulations. It’s essential to be familiar with the requirements and make them a priority.
Work with the Right Tools
When you have a lot of different client accounts to manage, you need to use the best tools available. Many financial service providers hold accounts with banks that allow them to open a number of accounts for their clients. Along with these, it can also be a good idea to use a system for client money management. These services work with banks to control the client money lifecycle. They can help with opening accounts, keeping them up to date and moving cash. They will assist with tracking money going in and out. They can help with accruing and delivering interest to clients and providing accounting services.
If you want the services you provide to be up to date, you must be online. Having your services accessible via the internet makes everything quicker, cheaper and more convenient. You should be able to access your clients’ accounts online, and your clients should be able to see any information they need too. Some banking services for financial managers are based online. This allows great value services with unlimited virtual accounts to use. This can reduce costs and cut down on time-wasting too.
Protecting your clients’ money is, of course, essential. Part of good practice is following the regulations. This includes ensuring their cash is adequately protected. You can hire an external service to help you do this, and they can do a number of things. For example, they could perform checks on companies and individuals before you send or receive money to them.
Managing your clients’ money well is your duty as someone who works in finance. You need to do it not just to stay on the right side of the law, but for your business reputation too.