A recurring sense you get once you step foot into the Providend offices is one of family. Someone might be baking cookies, while other members of staff might be swapping memories of their latest weekend retreat or the upcoming games day. Children may be playing happily in the kids corner while their parents sort out their financial futures.
This is a working ethos that has been instilled since the early days of the company, when it was formed in 2001 by like-minded individuals who were keen to shake-up the wealthcare sector.
“Providend is very much like a family, that is the way that we position ourselves. It’s not like going to a private bank, it’s like getting advice from a family member,” says CEO Chris Tan.
That family feel is all part of the Providend difference - not just in what they do but, more importantly, how they do it.
“When we first started, we were a small company and wondered how we could do things differently,” recalls Chris.
“We recognised that there were problems with the wealthcare sector - lots of cheating, pushing of the wrong products, and not enough good advice.”
It’s hardly surprising that wealth management companies tend to push products, rightly or wrongly, when they are paid on a commission basis. Providend, though, is different, and the only company of its kind in Singapore that does not charge commission. While other wealth management companies operate on a commission or commission plus fee basis, Providend offers advice on a fee-only basis.
Though not an original concept (the fee only model exists in mature economies like the US), the fee-only stance was a surpriseto the Singapore market, with most industry insiders saying the company was inevitably doomed to failure.
“Our motivation was that we firmly believed that we had a better business model, even though others in the industry thought we were being too ‘idealistic’. There is a sense of pride in doing something right,” says Chris. “People told us that they liked the way we did business and we realised it was not just a USP but a deeper matter of trust.”
Trust, honesty and reliability are keywords that are heard all-too infrequently in the financial sector these days, and Chris believes that Providend has actually benefited from this. “Five years ago, customers were perhaps reluctant to pay a fee, but now that the large banks have given so much bad advice, people are more willing to pay for good advice,” he says.
Despite their many doubters, Providend’s persistence has paid off and their success is clear to see. There are now 28 members of staff, who currently manage in excess of $250 million, with the target for the end of 2008 being $500 million.
Their client list now consists of 700 ‘families’ that they take care of.
And because Providend is privately owned, with 80% of the consultants also being shareholders, you can rest assured that your future is in reliable, familiar hands.
Whether it’s for retirement planning, investments, insurance or corporate services, Providend has your best interests at heart. Just like a valued and trusted member of your own family would.