International group of financial consultants form Cebu chapter

CEBU, Philippines - With its fast growing financial services sector, international association of registered financial consultants (IARFC) has established a chapter in Cebu.

IARFC founder and chairman Edwin Morrow was in Cebu recently to induct the new set of officers of the chapter led by Vilma Alcaraz, to officially form the group of registered financial consultants in Cebu.

Morrow said there is a need for a robust economy like Cebu, to be provided with legitimate financial consultants, as the market is starting to recognize the importance of financial literacy, just like in other countries.

Compared to a mere insurance agent, registered financial consultants (RFCs) serve to be the “doctors” of financial health of an individual, providing effective management to over-all financial need of a person in a more effective fashion.

At present, there about over a hundred RFCs in Cebu, they are the ones who will not only sell insurance or financial products, but give a holistic recommendation and total planning of short to long term financial plan of an individual.

Morrow said that people, especially in the Philippines should start to consider the importance of economics and financial stability in their lives, as economic concern is always and almost the root of every conflict, may it be domestic, inter-country problems.

In the Philippines, wherein financial literacy is still at its struggling stage, Morrow said it has to be boosted with the deployment of more FRC’s to educate the market further.

These financial consultants will not only offer a single insurance product or offer advises in favor of their respective companies, but will diagnose the proper financial requirement of a customer.

The members of the IARFC in Cebu are also employees or affiliated with different financial institutions, but they are trained to professionally advise a customer for proper financial product.

Morrow said that at present, the Philippines is too dependent on outside capital. There is a need for people to invest their money inside the country, so the dependence to overseas investments will be minimized.

The RFCs will give proper advice to clients where to invest, whether in real estate, bonds, insurance or stock market.

He said there are a lot of available and good investment products that people should take advantage to, only if they are given the right and professional advice.

IARFC has over 8,000 individual members around the world. Borrow hopes that number of RFCs in the Philippines will grow in number, so to improve the financial literacy of Filipinos.

Insurance penetration alone remains low in the country even in the presumably financially savvy "AB" income segment (45 percent).

Based on a study, conducted by Sun Life of Canada (Philippines), Inc., the penetration rate is much lower for the "C" market: 30 percent for the C1 segment (defined by Sun Life as a household with a combined monthly income of between P50,000 and P100,000) and 17 percent for C2 segment (defined as having a combined household income of between P25,000 but less than P50,000 per month).

The study revealed that the average Filipino earning between P30,000 and P50,000 each month can afford to spare between P300 and P500 each month.— (FREEMAN)