The internet, e-mail, social media, mobile sites, cloud storage, 24/7 access from seemingly anywhere; the march of technology into our lives has been as irrepressible as it has been impressive. It has shaken up the established order and opened up limitless opportunities to individuals and firms to start up, maintain and improve their personal and professional lives.
You’ve done the exams, you’ve set up a practice, you’re starting to attract clients; how can you fulfil your potential as a financial adviser?
Having the right business management system in place to support your business is imperative. With everything moving online, advisers have the opportunity to run their business and advise their clients through cloud technology. The cost and time savings enable them to spend more time on their clients, reducing the burden of administration.
E-advice, robo advice, automated advice; the pervasion of financial advice delivered through technology continues apace, although many financial advisers feel we are a way off the tipping point where the old practices of existing clients must be balanced with the new practices of potential clients.
It’s been a few weeks since our ‘Change the game’ Conferences and after speaking to and receiving feedback from clients, there seems to be a hunger for technology and how it can help financial advisory firms now and in the future. It seems the recurring buzzwords of robo-advice (or robo advisors) and eAdvisors are here to stay and with that in mind I thought it would be an opportune moment to recap on how we see technology supporting advisory firms now and in the future.
Financial advisers can underline their value to their clients by not just firming up the investment suitability process but also by explaining each step to educate the investor. In its final guidance paper on assessing suitability in 2011, the Financial Conduct Authority laid out what would be the new lay of the land – and that is: simply using a questionnaire to help assess portfolio suitability would no longer be acceptable.
Time and again, advisers seem to find themselves in hot water with the FCA (Financial Conduct Authority) over not demonstrating the suitability of their investment advice adequately.
If you are, then you’re not alone. In a recent survey conducted by us more than two thirds (69%) of those polled stated that their goal was to one day sell their financial advice practice, with 43% stating that they plan to do it within the next five years.
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.
