Ethos3 recently spent a few minutes to chat with Steve Glasgow, a veteran financial advisor, to discuss the role of storytelling in the financial industry. Steve is a First Vice President – Investments and Senior Institutional Consultant with Wachovia Securities. He works with individual and institutional investors including defined benefit funds, defined contribution plans, endowments, and foundations, and has experience working with institutions as a consultant for over $2 billion of institutional plan assets over the last 12 years.
1. What was your inspiration for going into the financial services industry?
My mother and my grandfather. He was always talking about stock market stuff when I was growing up. My senior year in high school my mother started grilling me about what I was going to major in (since I was only going to get 4 years paid for) and as we were talking about it she suggested Finance as a potential major. I was always interested in money and as we talked about what various folks did in the finance industry it really started to appeal to me. Haven’t looked back since…
2. You often have to give presentations to potential and existing clients, do you find it difficult to convey the often not so sexy topic of financials in an exciting way?
It can be challenging no doubt. The thing is that most people aren’t real interested in trying to understand the technical details, but they ARE interested in whether they can trust you to know them on their behalf. The subject of investing is for most people, at least from 30,000 feet, an interesting topic. Just don’t bore them with too much theory!
3. When giving presentations, how important is the role of storytelling in the presentations you give?
Absolutely important. As I said before, people get completely lost when you start getting too technical or theoretical. Using illustrations and anecdotes helps people to internalize the concepts you are trying to get across more effectively and are more likely to take action on the issues you are trying to persuade them on.
4. I know you are an avid reader. What would be your deserted island book?
The Bible…probably the best written book ever on so many different levels!
5. Being in the financial services industry with several rules and regulations, do you find this hinders your storytelling ability?
Maybe; I think that really depends more on your ethics as an advisor than anything. Some people in our business commit “sins of omission” as well as sins of commission in an attempt to persuade clients to take action that is probably against their best interests. That is the reason for all of the rules and regulations…it’s an attempt to “reign in” those stray cats that are trying to manipulate people for their own gain. Storytelling in the context of legitimate advice is a powerful tool and typically doesn’t run afoul of any rules or regulations – just make sure the facts support the story!
6. With the current state of the market being less than desirable, how is it impacting your business?
People typically go through stages of decision making (especially when it concerns their own money.) At some point everyone hits a “boundary” or stress level at which they quit being capable of acting rationally. Anyone in the sales business knows that people don’t make decisions or take action based purely on logic. So it stands to reason when a client sees a tremendous drop in the value on their statements they immediately extrapolate those results in their minds to permanent loss, and react in a very emotional manner that is counter to their long term best interests (one of the foundations of “behavioral finance” and the argument against purely efficient markets…but I digress!) which means liquidating or “getting more conservative.” Worst of all they decide its your fault and go looking for someone else to handle their money. This environment has definitely been very challenging from that standpoint.
7. What is a story that has changed your life?
The New Testament!
