Financial firms that operate with a clear sense of purpose often find themselves better positioned for long-term success. Whether it’s a commitment to ethical investing, financial inclusion or client-centric service, a well-defined mission can build stronger relationships and drive meaningful growth. But what does it take for a purpose-driven firm to outperform competitors that focus solely on the bottom line?
To answer this question, 20 Forbes Finance Council members offer their insights. Here’s how your firm can leverage its purpose not just as a guiding principle but as a strategic advantage to build trust, attract loyal clients and strengthen business performance.
1. Be True To Your Values
Exceptional performance has to start with a commitment to your values—one that permeates throughout your entire team. I saw this firsthand when my firm earned B Corp™ Certification, a reflection of that commitment to our values and our belief that profit and purpose can go hand in hand. – Sonya Thadhani Mughal, Bailard, Inc.
2. Prioritize Ethical Practices And Social Responsibility
A purpose-driven financial firm stands out by building trust with clients and employees through ethical practices and a focus on social responsibility. By aligning with causes like sustainability, it attracts loyal clients, top talent and impact-focused investors, leading to long-term success and growth that goes beyond just profits. – Vivek Subramanyam, TH Global Capital
3. Use AI To Promote Inclusivity
Firms can outperform peers by recognizing inclusive growth as a business strategy and using AI to build fairer, more resilient financial systems. By using AI to extend fair, affordable credit to those overlooked by traditional scoring models, lenders unlock new markets while addressing systemic inequities. Inclusion isn’t charity—it’s a smarter path to economic prosperity and business growth. – Mike de Vere, Zest AI
4. Integrate Purpose Into Every Level Of Operations
Giving back isn’t just the right thing to do—it also just feels good. Businesses can serve as a platform for meaningful impact. Raising over $16M for St. Jude, supporting Project H.O.O.D. to create opportunities for underserved kids in Chicago and strengthening nonprofits’ finance functions to maximize their impact are a few ways I’ve helped drive change and build cultures that value service. – Ryan Kunkel, Third Road Management
5. Leverage Your Business As A Platform For Impact
Purpose-driven financial firms can outperform peers by starting with a clear mission, integrating it throughout every level of operations, leading with core values and giving back to the communities they serve. When everyone understands the mission and how they contribute to it, companies experience increased workforce engagement, stronger customer loyalty and organizational success. – Mark Steffe, First Command
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6. Consider Your Clients’ Needs
Purpose-driven firms are often client-centric, which requires a strong connection and understanding of a client’s goals and values. This leads to decisions that compound positively in the long term. We see this in the crypto space. I know of firms focused on serving the new generation of investors that value self-sovereignty. The needs of these investors will not be met by a 60-40 portfolio. – Miguel Kudry, L1.co
7. Embed Sustainability Into Business Operations
Purpose-driven financial firms are a reminder of how sustainability principles and financial returns are not mutually exclusive. A firm that cares about driving impact for stakeholders needs to have sustainability principles built into its operations, such as best-in-class human capital practices. Limiting employee turnover in client-facing roles is critical to the sustainability of growth. – Nidhi Chadda, Enzo Advisors
8. Build Trust Through Transparency And Compliance
As an SEC RIA, we’ve invested significant time, money and personnel in providing an independently verified performance history for our firm’s investment offerings. Our main purpose is to be a trusted financial fiduciary; therefore, being able to showcase our history of decision-making in a compliant and fully transparent way enables greater client confidence in their choice of advisor. – Ivan Illan, Aligne Wealth Advisors Investment Management (AWAIM®)
9. Specialize To Outperform Megabanks
Community banks can’t outspend megabanks, but they can out-specialize them. By aligning their brand with specific audiences—like gig workers or eco-conscious savers—they build loyalty and deposits. We’ve seen banks thrive by launching digital brands tailored to niche markets, like those who want to forego their interest and direct it to a nonprofit. Purpose-driven banking can be a competitive edge. – Kathleen Craig, Plinqit
10. Attract Clients By Aligning With Their Values
Financial firms that prioritize purpose can outperform peers by attracting a growing customer segment. More people, especially younger generations, seek institutions aligned with their values. By showcasing sustainable and socially responsible practices, banks can attract new clients while expanding their deposit base and finding new talent who share their values in the workplace. – Monique Johnson, Beneficial State Bank
11. Solve Real Problems For Clients
Purpose-driven financial firms succeed when they solve real problems. At our company, we built a real-time payments platform because I experienced cash flow struggles as a small business owner. It wasn’t about adding another fintech tool to the market; it was about eliminating a pain point that held businesses back. When you build with intention, your customers become your biggest advocates. – Nick Chandi, Forwardly
12. Use Customer Insights To Drive Innovation
Financial firms excel when they have an intense focus on end-user goals and can proficiently transfer deep customer empathy into unrivaled products. The purpose-driven fintechs we partner with, for instance, focus on a variety of features that resonate with consumers seeking financial freedom—hyper-personalized solutions, value-based pricing and automated savings tools, to name a few. – Lindsey Downing, TransUnion
13. Put Clients’ Success First To Build Loyalty
Purpose-driven firms build real connections by putting clients’ success first. I work with lenders who take the time to understand my clients’ goals, not just their credit scores. They tailor financing to fit clients’ needs, and that partnership fuels small business growth. When clients feel valued beyond transactions, loyalty and referrals naturally follow—purpose drives performance. – Jared Weitz, United Capital Source Inc.
14. Strengthen Client Relationships Through Personalized Support
Purpose-driven financial firms stand out by collaborating closely with their clients and committing to supporting them every step of the way. It’s not just about the numbers—it’s about understanding the drive and determination that fuels each individual. Offering tailored solutions and demonstrating dedication creates strong partnerships that make a lasting impact. – Xan Myburgh, Backd Business Funding
15. Foster Employee Engagement To Drive Growth
Purpose-driven firms often outperform their peers by fostering employee engagement and customer loyalty, leading to better financial performance. A firm I observed implemented a clear purpose focused on sustainability. This aligned their team’s efforts, attracted socially conscious clients and reportedly increased their annual growth, showcasing the impact of a strong corporate mission. – Swati Deepak Kumar (Nema), Citigroup
16. Take A Holistic Approach To Financial Planning
Purpose-driven financial firms excel by integrating investments, insurance, tax law and estate planning, prioritizing education over sales. Many firms operate in silos, focusing solely on investments without addressing tax efficiency, risk mitigation or legacy planning. Firms that educate and provide holistic strategies empower clients to make informed financial decisions, leading to success. – Andre Pennington, Pennington Law
17. Develop Deeper Client Connections For Better Outcomes
Financial planning and investment management are deeply personal and require a personal connection with clients. So much of financial planning is behavioral, and if the advisory team understands what drives a particular client’s decision framework, the plan will outperform because it is more aligned with the unique wants, needs and requirements of that individual, family or business. – Gregory Fortier, Centinel Financial Group
18. Build Long-Term Stability Through Ethical Risk Management
Purpose-driven financial firms excel by building trust, managing risk prudently and focusing on sustainable growth. Triodos Bank, founded in 1980, proved this during the 2008 crisis. While big banks faltered due to risky investments, Triodos thrived by sticking to ethical lending, growing deposits and loans. Its resilience shows that aligning profit with purpose creates lasting financial success. – Terry Chen, Modulate Inc.
19. Reduce Costs To Give Back To Small Businesses
Part of our core strategy is how we reduce our cost-to-serve to be as low as possible—not so we can pocket the difference, but so we can give back to small business owners. Any money our customers are not paying goes back to the owners. Even a few thousand dollars a year can make a difference in the life of an SBO. For us, that matters, and that’s what we’re trying to do. – Eyal Lifshitz, Bluevine
20. Stay Focused On Long-Term Client Success
With constant distractions and short-term pressures, you must remain anchored in your core mission of securing clients’ long-term financial well-being. By prioritizing the clients’ goals over the noise of fleeting trends, you can guide them with confidence and stability. Reactions to the Covid and inflation scare of 2022 prove that blocking out the noise and staying focused is crucial for success. – Lance Scott, Bay Harbor Wealth Management
The information provided here is not investment, tax, or financial advice. You should consult with a licensed professional for advice concerning your specific situation.
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