Financial Advice Matters - Darren Smith

- By Steven Chong - ANSIIF Writer | 25 Oct 2019

When Darren Smith started as a trainee accountant with Commercial Union in Melbourne, he had a lot to learn, not just about what the company did for its customers but also office dynamics such as power struggles over resources and interactions with differing personality types.

Luckily, he was a quick learner and worked hard at his cash management roles, which got him involved with almost every department of the insurance company.

‘This was an excellent place to start and gave me foundation learnings for future roles, including a good understanding of money in and money out,’ Smith recalls 30 years later.

He’s never forgotten working with the long-term accountant on converting a 24-column, pre-printed paper bank reconciliation sheet meticulously completed by hand with quill-style pens into an automated Excel spreadsheet with the support of many adding-machines.

‘Each month it was a piece of art and source of pride, with the constant clacking of the team’s adding machines in the background,’ he recalls.

‘It was a really important lesson that taught me the power of automation and encouraging your team to look for better ways to do things, as well as managing change within the workplace.’

The automated spreadsheet was a real winner and allowed the job to be done in about one-tenth of the time normally taken – and no clacking of adding machines.

GOING THE EXTRA MILE

Smith says he was curious and blessed with a supportive employer who provided study assistance so he could complete his last year of a Bachelor’s degree in accounting part-time.

He used the daily hour-long commute on the train between Melbourne’s west to the office in Latrobe Street to study, and attended night classes where he did very well, finishing in the top five per cent of students.

He then completed the CPA program studies while working full-time.

‘I developed great habits,’ Smith says of this busy time.

‘To achieve great results, there are always sacrifices and it takes real effort, focus and commitment. The hard work was recognised and I was one of the leading graduating students with distinction.’

The dedicated young accountant’s results and performance were also recognised by Commercial Union’s management team, and an opportunity arose to work with a subsidiary specialist mortgage lenders insurance company in Sydney.

‘This was a turning point in my career and a game changer,’ reveals Smith.

‘I had to convince my family, including two very young children, to move to a state in which we had no relatives, nor ever lived in before. With my family’s support, however, I was able to grab the opportunity with both hands.’

THE INTERSTATE CHAPTER

Commercial Union Lenders Mortgage Insurance was a small firm of about 20 people and had some inspirational management who became great mentors to Smith over the next five years and beyond.

‘I was the accounting and project manager for the business so got to understand all the movements of money and the management of risk. Together with the CEO, I was responsible for the business’s management and renegotiation of its annual reinsurance program,’ says Smith.

‘Those five years were incredibly hard with long hours, but I learnt so much about the industry and dealing with external customers. The principal of the business was a banker of 40 years, a strong believer in further education and became an absolute advocate for my work and me.’ 

Smith realised that he needed to deepen his knowledge of the broader insurance arena, so joined ANZIIF and completed a Graduate Diploma in Insurance for a platform on which he could build credibility with peers.

Some important career lessons on this journey that Smith relates include being put in an unfamiliar area outside of his comfort zone, which led to great personal growth.

‘It was in this role I also started to manage a small team and present regularly to internal and external parties. These skills became more important in future roles. It also became clear to me the difference that strong respected mentors can have on your career opportunities.’

GOING GLOBAL 

After five years in Sydney, Smith was offered the opportunity to be seconded to a two-year role in London in the strategy team of Aviva Plc. 

Another conversation with his supportive family saw him off to support the top executive team of one of the largest insurers in the world.

‘This was a great time in my career and I got to travel extensively and learn from some amazing leaders. Part of my role was analysing business plans for the different Aviva businesses throughout the world and dealing with their business leads,’ Smith recounts.

It was interesting, challenging and exciting, and Smith’s knowledge of life insurance, reinsurance and general insurance went to the next level.

Strong relationships and extremely supportive mentors helped again in securing an invitation to participate in a multi-year management development program through London Business School and Wharton Business School. 

Then followed a two-year secondment within Norwich Union Life, based in York in northern Britain.

‘My time in the UK and abroad changed my perspective on many fronts because I had broadened my capabilities and consulting skills to a point where I could look at businesses and key drivers from 30,000 feet as well as drill down into the detail when required,’ Smith says. 

At the same time, maintaining ANZIIF membership helped keep him connected to industry changes back home.

TRIUMPHAL RETURN OF THE NATIVE

It was not until May 2003 that Smith returned to Melbourne, to a subsidiary of Aviva where he undertook several strategy and relationship roles. Again, lots of learning and new experiences ensued.

‘It took some adjustment to get back into what I wanted to focus on, but I found a great opportunity to lead a small team and take on a distribution role within the business. 

'My preparedness to again be mobile and take on new responsibilities opened up opportunities in Queensland, where I have been since 2006,’ Smith says.

And somehow during this time, Smith also completed a Master of Business Administration. In his distribution roles, meanwhile, he discovered the passion and strength he’d felt around business development and understanding what was important to customers.

‘Once I understood what was important, I was well placed to add value to them. Again, it highlights an important lesson: that when you do something that you love and are passionate about, it really shows. It also takes some time to find your calling,’ Smith adds.  

STEPPING OUT ON HIS OWN

He also met influential leaders in the local financial advice industry and in 2011 an opportunity arose with a successful advice business that needed to reposition for industry changes and a departing CEO.

Smith took it and, as managing director, has since built a team of 28 that he’s taken through several transitions, one being the creation of Financial Advice Matters.

‘We have come a long way in building a progressive culture and sustainable business centred around fee for service and value to end clients.

In 2018, Centrepoint Alliance Group awarded Financial Advice Matters Advice Firm of the Year which Smith says represented four years of collective effort.

‘Inspiring the team to push the boundaries and continually develop themselves and the difference we can make to customers’ lives is very rewarding. It is a passion and does not feel like work,’ he says.

NEED FOR EDUCATION

According to Smith, one in four working Australians are financial stressed, which has a significant impact on their mental health and productivity at work. 

One third of Australians are living pay cheque to pay cheque, and many don’t have buffers to protect them against the unexpected. 

‘At Financial Advice Matters, our mission is to help more Australians confidently achieve their goals and to educate them so that they are better placed to make informed decisions,’ he explains. 

‘We operate as a fee for service business looking after about 1200 families through a range of services from basic budgeting skills through to aged care services for loved ones.

‘We spend a lot of time understanding what is important to the family, their goals, their values, their starting position and then help develop a path towards achievement.’

Smith says education is a core part of the company’s work, whether it is offered to groups within organisations or individuals.

‘The need for advice and education in this area has never been greater, particularly as a lot more people approach an uncertain retirement.  It is also compounded by many families are carrying more debt which adds to the pressure. 

‘Basic finance and life skills are just not shown or taught to people and they can only stumble through it as best they can. 

‘We focus on helping build greater confidence and resilience. For a lot of people, this means moving from “I should do something” to “I must do something”.’

FINANCIAL WELLNESS GAP

To that end, Financial Advice Matters works with many organisations to fill the common financial wellness ‘gap’. 

‘Financial wellness at its core is about financial confidence, sense of financial direction and confidence and ability to meet your short terms commitments,’ Smith says. 

‘The core of our workshops is to educate and improve financial literacy and confidence of individuals. This puts them in a much stronger position to make informed decisions and to alleviate unnecessary stress. 

Smith says staff appreciate that their employer is investing by allowing them to get access to these services at no cost, in work hours and conveniently within premises.

‘It is a safe environment to build knowledge and confidence and ask questions. It allows people to learn from stories and experiences of others. It removes a barrier of entry as it is convenient, given it is held on site.’ 

Smith adds that there is no question that more can be done in promoting financial awareness. 

‘Leaders in the area of total wellness must look at solutions in this space. The problem will not go away by itself and it continues to have a large impact on productivity within the workplace as well as individual employee’s wellbeing.’

THE FINANCE IN ANZIIF

Smith says his ANZIF membership has assisted him greatly, providing access to an expanded network of professionals and resources.

‘It has provided me with access and insights into the industry along with thought leadership in a broad range of areas, particularly in my time overseas it helped keep me connected to the industry. 

'The professional designations are also important for demonstrating a person’s commitment to self-development and the profession.'  

One of ANZIIF’s few financial services members, Smith says he sees himself as both an insurance and a finance professional.

‘This highlights the diversity of our industry and the variety of career paths that are available. Being a member of our chosen profession is not a choice for me it is a necessity and it provides a strong platform for a common voice at an industry level in dealing with some of the reforms and changes taking place.’ 

Smith says his career to date has been an adventure and he is grateful to all the people who have assisted him on the journey. ‘I always look for opportunities to provide others with guidance and to help them make the most of the opportunities that they create.’