Along with the intensive development of the banking and loan market in recent years, the number of people specializing in professions related to this sector is growing like mushrooms after rain. In addition to insurance agents or consultants of loan companies, there are more and more specialists in financial consulting. It is a profession with which many of us have done more than once. How is a financial advisor defined at all, what do the professionals performing this profession do and what are their competences?

The profession of financial consulting in theory and in many cases confirmed in practice is very useful. For people who have no time to delve into the often complicated offers of financial institutions, advisers have helped many times. They presented the most important elements of the offers of banks or loan institutions. They showed positive and unfavorable records, as well as tailored offers to our strictly defined needs. Sometimes they even sold us a financial product that met our specific expectations.

However, despite the good and usefulness of the financial advisor, it is also important to remember about the problems associated with this profession. The popularity of this profession, which has been growing rapidly in recent years, unfortunately causes that various people are attracted to it with a completely extreme level of education and experience. What is more, due to the lack of specific regulations defining this profession, it can be performed by literally everyone. Even someone who has never had any experience and required knowledge related to banking and broadly understood finance issues. Let’s get to know how the profession of a financial advisor is usually defined as well, and what to pay attention to if we are dealing with its representatives.

Financial advisor – definitions

Financial advisor - definitions

According to the European Union directive on financial intermediation, a financial advisor is a profession performed by independent professionals who are not related to any specific financial institution. Their role in the assumptions is to be primarily to provide the client with substantive knowledge about the protection of his property.

In turn, according to the European Federation of Financial Advisors and Financial Intermediaries Financial Advisor (FECIF), a financial advisor is a well-educated specialist. Its purpose is to take appropriate steps to protect the client’s assets. In addition, the client’s financial security should also be important, which is analyzed by verifying his or her needs. The selection of products to achieve financial goals, ensuring financial liquidity and preparing the client to use the services of a financial institution are other assumptions defined by FECIF. At the same time, it is indicated that the financial adviser is not a financial intermediary.

How does a client’s work look like at a financial advisor?

Let’s move to the practical part of the activity of most financial advisors on a specific example. They base their work primarily on serving clients who are looking for loans. The first meeting of a financial advisor with a client usually takes place at:

  • Recognizing the needs of a given person.
  • Recognition of the type of loan that is sought by the client.
  • Knowing the amount of money you need.
  • Find out for what purpose the installment loan is to be used.
  • Asking whether the client does not take into account the use of foreign currency loans or only granted in the Polish currency.

Then, it is the financial adviser’s responsibility to make an initial assessment of the client’s financial situation whether the mortgage or the guarantors can be secured. The maximum and at the same time convenient installment amount is determined, which is repayable for the customer.

Next tasks

The next steps a financial adviser has to do is submit documents to the client. On their basis, the bank in which he wants to take out a loan will assess his actual creditworthiness. The following documents are important here:

  • Certificate on the amount, type and nature of monthly income.
  • Certificate from ZUS about discharging pension contributions.
  • Documents from the court.
  • Completed forms that a specific bank requires.

The financial advisor first of all provides the client with information on the amount and type of documents required for a specific bank. Often, it also helps to fill, complete and complete the required information.

Financial advisor and history at BIK

It often happens that financial advisors help with customer history in the Credit Information Bureau (BIK). This usually involves advice on how to delete entries from our history. Experienced advisers are even able to effectively change the image of the future borrower in the registry, so that he has more room for maneuver than just a no-bitch check .

Usually, the advisors’ competence is to submit inquiries to banks. Based on the answers received, the advisers provide clients with information on the type and amount of credit. This helps the client decide what type of loan will be optimal for him.

What’s the end?

If all the required documentation and application are already submitted, then the financial advisor contacts the bank’s employees. The goal is to collect information about the stage of the client’s case. In addition, he learns what needs to be supplemented and reported. At the end, he learns whether the decision to grant a loan is positive.

It is not the end. At this stage, the adviser informs the client about everything, mediates in the delivery of final documents and helps correct any mistakes made when completing the documentation and forms.

After granting the loan, cooperation with the advisor is virtually complete. All that remains is to get a salary from the bank for which he has acquired a client who has been granted a loan. This is already determined individually.