Břetislav Hrabě, Director of Financial Distribution of the DRFG Investment Group, came to finance during his studies at the university in the early 1990s. He started, as many others, in a multilevel marketing company. However, today he says that the multilevel does not exist in the financial world any longer.
In the 1990s, this model was still successful, Mr. Hrabě recalls his start in finance. "At that time, such financial products as building savings or supplementary pension schemes only started to emerge. Moreover, there was practically no competition at all. It was simply a resale of financial products. And this situation lasted until the end of the last century."
At the beginning of the millennium the market changed
Companies were looking for a more sophisticated method how to offer financial products to their clients, so they began to call it financial advisory. "In reality, we cannot call it financial advisory because if you give somebody an advice on finance, apart from risks, you have to deal with the cash reserves as well. But in case of short-term conservative investments, the banks do not provide any commissions and therefore nobody offers them to the clients," Hrabě says. In his eyes, a multilevel is a brilliant business system that works great for fast-moving consumer goods, such as food supplements, drugstore goods, cosmetics, etc. "But this is not the case of financial services, especially when it comes to insurances or a pension insurance. In the course of your life, you can modify it, but you will not do it every year," Hrabě points out the reasons why multilevel cannot work in finance.
At DRFG we offer financial services
"I do not like the overused term—financial advisory, therefore we prefer to use the term financial services. For us it is a complementary business to investments. But, for example, mortgages are closely linked to them," Hrabě says and explains why they differ from their competitors. "In contrast to 'independent' financial advisers, in DRFG we primarily offer our products to the clients, the main reason being that we can influence them." In his opinion, people no longer demand independent advisory, what they want to have are profitable and least risky products. "When someone sells third-party products, he has absolutely no impact on them. On the other hand, our clients deal directly with the consultants from the investment group that has a direct impact on the offered investment instruments. It turns out that this is the right direction, and we will continue in this trend," Hrabě concludes.