Technology has completely restructured the modern business landscape. According to a recent report from Executives Online, 80 per cent of the UK’s executive-level workers feel that advancements in technology have changed the way in which their companies operate. Huge improvements have been made across the board and there are plenty of beneficiaries.

The same study also found that the financial sector is feeling the shift more than most. With multi-channel engagement and process efficiency at the top of most business owners’ priority lists these days, web-based financial management systems are proving particularly useful – and there are plenty of reasons why.

With many so-called ‘DIY’ financial planning tools available online today, plus last year’s RDR changes to fee structures, some consumers might be persuaded to think that they can manage their own investments, savings and pension pots without the need for professional intervention.

Consequently, it is absolutely vital that financial advisers find ways to highlight their worth and clearly explain to clients or prospects the type of return they can expect from their investment in you. 

A new era of professionalism

A year on from RDR, was it the storm advisory firms thought it would be? We caught up with some of our clients to see how they had adapted their businesses and to gauge their thoughts on the post-RDR landscape. 

91% of mortgage advisers feel prepared for the MMR

With the Mortgage Market Review (MMR) only a month away, mortgage advisers are feeling optimistic about what these changes will bring to their business. Our latest research reveals that 91% of advisers feel they are either prepared or very prepared for the new regulatory requirements. In fact, 72% of the mortgage advisers surveyed feel that the MMR will be positive for their business.

We conducted a survey of 100 mortgage advisers across the UK to find out how ready they felt for the MMR. While the majority seemed optimistic, 34% of advisers named increasing admin burdens as their biggest concern, with 11% worrying that the MMR would negatively impact sales. Other concerns included an increase in compliance costs (6%) and longer working hours (5%).

Our findings showed that mortgage advisers are well aware of the responsibility they have to provide lenders with detailed client profiles. In preparation for these new requirements, which include carrying out in depth scenario planning and ‘rate shock’ tests, the survey found that the most common changes mortgage advisers have implemented are to process (20%) and training (28%).

Our research also found that spending on technology has been relatively low in order to prepare for the new regulations, with 72% of advisers having spent £3,000 or less, and 4% spending up to £10,000. Despite this, 94% of mortgage advisers are confident or very confident that their systems will allow them to evidence compliance post the MMR. This highlights the fact that  effective technology in this sector can be low cost.

Whilst it doesn’t have to break the bank, having the right technology systems in place will be hugely important when it comes to efficiently complying with the new requirements. Appropriate software can help to alleviate the admin burdens brought on by the MMR, speeding up processes, improving accuracy and reducing unnecessary duplication. Advisers who don’t plan to use technology to help with the increased administrative tasks run the risk of having to put in extra man hours, which increases operational risk, and could also  reduce the amount of quality face to face time they spend with clients.

To see the full results of our research and accompanying analysis, you can download our White Paper below

We have launched an MMR checklist to ensure that mortgage advisers are aware of and prepared for the changes that the new regulation will bring in. With the MMR fast approaching, we wanted to provide advisers with a tool to check that the transition in the market goes smoothly.
 
The main change under the MMR is that the majority of mortgage sales will need to be advised. Advisers will be given the responsibility of providing supporting documentation to demonstrate that client profiles are eligible for a mortgage application. This means that lenders will heavily rely on advisers to carry out these administrative processes.