The hearings of the Hayne royal commission are driving a technological shift in the advice space and altering the adviser-client relationship as a result, according to a leading advice software firm.
In a contributed column, myprosperity chief executive Stephen Jäckel said the royal commission has left many advisers searching for answers and a new way to survive with old commission models fading, with clients calling for more transparency and a better customer experience.
As a result, advisers attempting to build a business that’s future proof need to be addressing these changing needs and helping clients build wealth and better outcomes for their families.
Further, Mr Jäckel said it’s no longer OK to just take a retrospective look at how a household has fared over the financial year, and that the adviser-client relationship is becoming continuous and forward-looking.
“Communication expectations have changed. Clients expect ongoing check-ins that are based on live data and advice that sets them up for the next opportunity,” he said.
“In practice, this means the very content of a meeting has transitioned from an update of where a client is at to a conversation around where a client wants to go to.
“Live data feeds means everyone can track their progress in real-time and the whole meeting can be forward-looking.”
Mr Jäckel also noted the “mass of opportunity” for advisers to benefit from artificial intelligence and machine learning, both of which are going to impact the financial advice industry.
“Many advisers and planners are concerned that these advancements will have a negative impact on their business – taking away the need for their services and eating into their client pool,” Mr Jäckel said.
“However, when it comes to AI and machine learning, there is a mass of opportunity for advisers to benefit from. The technology can streamline relationships, processes and enable them to transition towards using data to be more proactive.”
Myprosperity was named Financial Advice Innovator of the Year at the 2018 Awards for ifa sister publication Fintech Business.
Adrian Flores is a deputy editor at Momentum Media, focusing mainly on banking, wealth management and financial services. He has also written for Public Accountant, Accountants Daily and The CEO Magazine.
You can contact him on [email protected].
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