Advisers embracing tech for workflow management and client engagement

While 2022 didn’t signify a significant change in the adoption of new efficiency technology among advisers, a recent survey by Adviser Ratings revealed that advisers quickly turned to tools for advice production, workflow management, and annual agreements.

The firm anticipates that artificial intelligence applications, such as ChatGPT, will soon be more commonly integrated into advisory services. 

Supporting this view, the final Quality of Advice Review (QAR) report penned by Michelle Levy highlighted the increasing role of technology and digital tools in complementing traditional advisory services. 

Ms Levy suggested that technology advancements would likely result in more instances of computer programs and algorithms providing advice, with human advisers acting as intermediaries between the program and the customer.

Regarding advisers’ current use of technology solutions, Adviser Ratings’ recent survey of over 500 practices found that Xplan continues to dominate the workflow management space, with 39 per cent of advisers reporting its use.

Moreover, the firm revealed that, in the post-pandemic era, there has been an increasing demand for client portal tools that facilitate easy data exchange during the advice process, from both advisers and clients alike. Xplan again emerged as the dominant player, accounting for more than a quarter of all business in the client portal market.

However, the firm pointed out that advisers are increasingly seeking tools that enable their clients to visualise their goals and understand the potential impact of different scenarios. 

“We expect this will become even more important as clients grapple with the myriad current challenges, such as rising interest rates, inflation, and market volatility,” Adviser Ratings said. 

“While we are still awaiting the government’s response to the Quality of Advice Review, we can’t see a scenario where technology doesn’t play a bigger role in making advice more efficient for advisers and more accessible for consumers,” the firm added. 

On a recent episode of the ifa podcast, founder and director of Neilson & Co Wealth Management, Ben Neilson, explained how he utilises ChatGPT to help provide financial advice.

“We used [ChatGPT] to reduce the need to create content initially. I said there’s four or five pages here that I don’t care about, and I don’t want to bill to do,” Mr Neilson said.

“If you look at the content that comes out with the super contribution recommendation, it’s the same. It’s always the same. It’s just the amount and the person are different. I’m sitting in the office thinking, ‘Why am I billing for this? How can I get this done?’ So, we used ChatGPT to write recommendations, and then I thought there’s probably more to that.”

Mr Neilson took it a step further and decided to test ChatGPT’s competencies in creating statements of advice (SOAs).

Ultimately, Mr Neilson said that advisers shouldn’t be worried about AI replacing them, adding that it will free them up to do the important work.

To hear more from Mr Nielson, click here.