As markets have tumbled amid increasing claims, counterclaims, and outright fraud, it’s been easy to keep focused on the loss of money – dollars, profits, portfolios, bank accounts, mortgages, IRAs, savings. Wherever there’s money, a lot of it – a staggering amount -- has been lost lately, in reality, or on paper.

But there’s another loss accumulating that we’re just starting to acknowledge.  As a quote from Thomas L. Friedman, a columnist for The New York Times, states:

“We’re going to have to get used to a loss of trust. All those rock-solid people and institutions that we trusted with our money, our pensions and our kids’ piggybank savings — like Citigroup, Merrill Lynch, Bank of America — do not seem trustworthy anymore. Never before in my adult life have I looked around at every bank in my town and said, “I’m not sure I wouldn’t prefer to put my paycheck in a mattress.”

That’s a sobering observation from a respected source. We haven’t begun to assess the damage, the fall-out, the new geography of an entirely and eternally morphed financial services landscape. Who’s a winner here?  How do you know whom to trust? Based on what? Are you trustworthy? While you might be reeling from the losses of plunging portfolios, will the erosion of trust haunt you more than financial losses?

Recent reports suggest that 95.6 % of Financial Advisers surveyed believe they’re not in danger of losing clients. To you, I say congratulations on doing such a superb job! You must be so relieved!

But wait a minute.  Another survey revealed that 66% of respondents – people just like your clients -- reported they were disenchanted with their current FA (that could be you!) and were actively searching for someone new.  That’s quite a disconnect from those 95.6% of Financial Advisors who think they’re somehow “safe” from losing clients. That’s a big gap.

Glib rationales that “everybody’s in the same boat” can’t be used as an excuse to shrug off the need to examine our own intentions and trustworthiness. Rebuilding lost trust – just like rebuilding lost fortunes – takes time, effort and intention, and CABs can be a powerful tool in the process.

Thoughts?

Have questions about establishing a CAB? My company, CABHQ, offers a free 30-minute phone consultation with me. Call me at 585-264-2000 to discuss the best way to create a CAB for you and your clients.