F.A.Q. #8 - What exactly IS needs based planning?

Updated: Oct 15, 2020


Today's blog post is about my own views of how "needs-based" financial planning came about... because I believe it is an over-used and perhaps misused term to describe financial planning.

Financial Employer Sales Objectives Turned Into "Needs-Based Planning"

I got my start in financial services at a large bank. One part of my job description was to "increase wallet share" with each customer. Today, this bank actually calls their products "solutions". This bank taught me about "profiling" and "searching for needs" that we can sell to. We were held accountable to hold certain "cross-selling" ratios to make sure that we were doing the full job.

A "full banking package" might look like this:

  • Checking Account

  • Savings Account

  • ATM/Debit Card

  • Online Banking Access

  • Bill Pay Service

  • Credit Card

  • Brokerage referral, mortgage referral, or a home equity lending application

When you look at a list like this, it's easy to conclude that we're "meeting our customer's needs" by selling everything we could... that makes sense f