Why Liability Planning is the Next Differentiator for Financial Advisors, with Siddhartha Oza of Sora Finance

“On the Circuit” is a podcast where conversation sparks innovation, hosted by Johnny Sandquist from Three Crowns Marketing. This season, his guests include industry conference attendees from across the country.

Net worth equals assets minus liabilities.

“You don’t need to have the Series 65 to know that equation,” Siddhartha Oza said. 

Siddhartha is co-Founder and co-CEO of Sora Finance, an AI-driven debt financing and management platform.

According to Siddhartha, advisors excel at all things asset management (i.e., estate planning, wills and tax prep) but ignore the other component in the equation: liability planning.

A Spectrem Group study found a huge gap between client expectations and advisor services when it comes to this area – 83% of clients expect credit and loan advice from advisors, but only 3% felt that they received those services. 

It’s not like advisors don’t want to offer liability planning. Lack of access to liability data is a huge roadblock that keeps most financial planners from even considering offering it. 

And even if you could gain access to up-to-date data, what would you do with it? How could you use it in a way that adds value, not cost, to your clients and business?

Enter Sora Finance. With access to APIs and connections to lenders, Sora pulls in clients’ up-to-date liability data. They simplify the process for clients and advisors – and ensure it’s a value-added service, not a cost center.

“Whether a client comes to you looking for support on a mortgage or they’re coming for support on a private aircraft loan or they’re looking for a commercial loan for their small business because they’re a small business owner, suddenly now you can support them and not just send them to a third party bank,” Siddhartha said.

Siddhartha firmly believes that liability planning is the secret to differentiating your practice and unlocking new AUM – and it’s hard to argue with him.

Siddhartha joins us for episode 42 of “On the Circuit” to talk about the importance of liability planning for advisors and how Sora provides the resources and support throughout the process. He talks with host Johnny Sandquist in a conversation recorded live from the Fearless Investing Summit in October 2023 in Miami.

Click “play” above to listen to the full episode. To hear from more industry friends and experts, subscribe to “On the Circuit” wherever you listen to podcasts. 

Key Takeaways

1. Advisors aim to grow or preserve their clients’ net worth, which is calculated by subtracting liabilities from assets. Advisors often excel at asset management, but ignore liability planning.
2. Advisors have an opportunity to work with clients on liability planning — a value-added service for clients and business.
3. Holistic planning — or acting as the quarterback of clients’ finances — helps to ensure their trust and loyalty.

Key Timestamps and Topics

• 00:01:20 – Siddhartha explains that Sora exists to solve the industry’s lack of focus on liabilities — a critical component to growing clients’ net worths. 
• 00:02:38 – There’s a massive gap between client expectations and advisor services, meaning a massive opportunity for advisors to include more value-added services to their business.
• 00:04:59 – What are the three roadblocks advisors face that prevent them from working with liabilities? And how does Sora help advisors deliver that value-add?
• 00:09:10 – Siddhartha and his co-founder come from a history of finance and technology, which helped them zero in on the greatest opportunity to drive impact for advisors using software.
• 00:12:37 – Siddhartha tells listeners about the session he’s hosting later that day on the importance of liability planning for advisors.
• 00:14:53 – Siddhartha drops the details on the new product Sora is launching to help advisors analyze prospective clients’ liability profiles.
• 00:17:02 – What’s the number one thing advisors should be doing to keep their clients fearless?

Relevant Links

• Download our free ebook, The Advisor’s Guide to Starting a Podcast
• Connect with a member of our team
• Learn more about Sora Finance

About Three Crowns

Three Crowns is a full-service marketing partner, providing the financial industry with high quality custom blogs, website design, branding, podcast production and more. We help financial advisors and fintech companies find their message and amplify their voice. From strategy to click-worthy content, to SEO optimization and social media promotion, our team is ready to help you feel confident in your communication. Click here to connect with a member of the Three Crowns team today.