IFAs still missing a trick on scaled advice

Financial advice software provider Provisio says greater use of scaled advice could provide IFAs with business opportunities and help them press into the self managed super fund (SMSF) advice space.

Self-employed advisers (IFAs) may tend to see scaled advice as a threat because it has predominantly been used by institutions and super funds to provide phone advice but there are many ways it can help an IFA in their business, Provisio Technologies chief executive Cameron O’Sullivan told ifa.

Importantly it could provide them with a greater opportunity to service self managed super fund (SMSF) trustees.

“SMSFs are not typically going to require a holistic plan from an IFA. But they will often have smaller transactional queries and add-ons that they need looked after. “This is one of few ways IFA’s seem to have available to tap this growing market,” he said.

Scaled advice could also benefit advisers with an ongoing review process around retirement income.

“Generating scaled advice documentation around retirement income and the steps to bridge any funding shortfalls has been hugely successful for some IFAs,” O’Sullivan said.

“It lifts your focus away from short-term investment performance so clients understand long-term outcomes. This may also have some appeal to the SMSF market.”

A scaled advice tool that clients can use to play around with projections and calculations can help save time in the advice process by essentially pre-preparing a fact find, as well as educating the client around key issues, he said.

Scaled advice tools could also make it more economical to retain and service C and D clients by helping meet servicing requirements without demanding a full review or statement of advice.

“Exploring online advice and phone-based models for these clients, either employing them directly, or leveraging off a capability from their dealer group or platform provider, can provide real value to a client at a fraction of the cost,” O’Sullivan said.

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