Advanced Diploma of Financial Planning (ADFP) Practice Test

How many financial planning services do banks typically offer?

1. Many services

2. A moderate number of services

3. Very few services

4. Only basic services

The correct answer is: Very few services

The concept of how many financial planning services banks typically offer can vary considerably among institutions, but it is often true that banks tend to provide a limited range of financial planning services when compared to specialized financial planning firms. Banks focus primarily on basic financial products such as savings accounts, loans, mortgages, and investment accounts. While many banks do have wealth management divisions or provide some level of financial advisory services, their offerings may be centered around traditional banking services rather than comprehensive financial planning. Thus, it is reasonable to consider the breadth of services they offer as being quite limited relative to what can be found elsewhere in the financial planning industry. On the other hand, options suggesting "many services," "a moderate number of services," or "only basic services" do not accurately reflect the general trend of banks’ approach. While some clients might perceive the range of services as moderate due to the inclusion of certain advisory roles at larger institutions, the fundamental financial planning services that a typical bank provides are relatively scarce when compared to dedicated financial planning firms, which offer tailored and comprehensive services to meet a variety of individual financial needs.