Technology and advice – innovation waits for nobody

 Technology can transform industries, just like Xero did for accounting.  How will it forever change financial advice? 

There is a consensus in the financial planning industry that paraplanners will be  made redundant by technology. While technology will have an undeniable impact  on the paraplanning industry, the future for paraplanning is not as apocalyptic as it  appears. We need only to look at Xero’s impact to predict the same trajectory technology can have on the financial planning industry.  

Xero exploded onto the accounting industry in 2006 when it brought accounting  technology from the desktop to the cloud. While the initial reaction from  bookkeepers was fear – and indeed, accounting member magazines ran articles  on how to exit the cloud in case of disaster, such was the interest in Xero – what  happened is that businesses that adopted the innovation ended up thriving  because they could service more clients and give more time to each of them – reducing a lot of the administrative burden.  

“There is an enormous time imbalance that financial planning businesses are  experiencing where they spend 10%-20% of their time with clients and 80%-90%  on administration,” Asendium’s CTO, John De Angelis said.  

Like how Xero propelled the accounting industry forward, what technology offers  is the ability to flip that percentage dramatically to the point where you can spend, at a  minimum, 60%-70% building relationships with your customers, and 30%-40% on  administration. Automation gives you more time to be with your clients, and the  ability to be more creative in your role. 

If the financial planning profession is to thrive and be profitable despite the  increasing compliance requirements, businesses need to remain open-minded in  evolving what would traditionally be considered administrative roles into creative  roles. 

Paraplanners and administrative staff that were traditionally stuck on creating  advice documents can now transition to assist financial planners in developing  financial strategies for clients, or transition to become financial planners  themselves – which will increase the overall number of financial planners in the  industry. 

Technology continues to improve and change the way that we work, through  collaboration and an evolved ability to engage with each other. The financial  planning industry is no different. The sooner we embrace and evolve with  innovation, the sooner we can begin to reap the benefits of change. 

To learn how your practice can harness the power of automation, book a demo with Asendium here


Technology and advice – innovation waits for nobody
ifa logo

Subscribe to the ifa bulletin

Receive daily online news,analysis, reports and business strategies
By signing up you agree to our Terms of Use and Privacy Policy

Website Notifications

Get notifications in real time and stay up to date with content that matters to you.