These could be the words of the big players NAB, AXA, AMP or it could be a smaller dealer group, or some boutique financial planners, but they weren’t.

They were the words of Virgin Blue’s CEO John Borghetti, who addressed the Financial Services Council in Sydney earlier this month. The rest of the sentence was – “we have a formidable weapon not available to our competitors – the people and culture of Virgin Blue.” But this can also be true of many other businesses – in many industries including financial services.

Facing similar issues as financial services businesses – Borghetti said that the only thing constant in the industry is that nothing stays the same and challenges are always present – dressed in many different forms – from high fuel prices to SARS and more recently with the GFC. Financial services might swap thee aviation industry’s issues with greater regulation, shaky markets, and government reform. However, the way that smart leaders face these challenges is to recognise the strengths of their business.

To highlight the people and culture is something not often heard in financial services. It is important for a strong culture to have a strong leader. When Virgin took flight in Australia for the first time – just over 10 years ago – its larger than life leader Richard Branson stamped his personal brand over their airline. It was attractive young hip staff. The airline was a low-cost carrier – unique in the market.  Today the market has changed. There is greater competition, cheaper fares and expanded markets.

Borghetti took the reins of the company just four months ago and already looks different  from the jeans-wearing management of old– he wears Zegna ties and suits. But he says that it’s not a contrast to the culture of the staff  – instead he says it’s an evolution. “The staff knows they have to evolve to keep the culture and be ready for something new,” Borghetti said. “You have to bring people with you and they have to be willing to come with you.”

Looking at the challenges ahead – Borghetti says, in the past 10 years the size of the domestic market has doubled. Meanwhile, general consumer prices are up 36 per cent, but commonly available domestic fares have dropped 15 per cent and in nominal terms 23 per cent (excluding GST). It’s an environment not unlike financial planning.

Borghetti said Virgin Blue would use its strengths to meet the challenges of the 21st century – its timing, hunger and people and “we don’t know what was impossible “. Who will be the financial services’ Virgin Blue?

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