Shadforth partners with MLC for new tech expansion, targets scale and advice gap

Shadforth Advice Group have partnered with MLC to enhance its in-practice technology and AI offerings, highlighting the need for greater scale to help close the advice gap.

This new partnership includes the integration of MLC Expand’s newly launched artificial intelligence (AI) tools that will allow for automation in processes such as document generation, using information from client service agreements and statements of advice.

According to MLC Expand, these new features will allow Shadforth to “significantly improve efficiency, eliminate manual duplication and reduce the risk of error”.

“MLC Expand is built by advisers, for advisers. This innovative rollout directly responds to feedback from advisers looking for smarter, faster ways to free up their time and their support staff’s time – so they can focus more on what matters most: their clients,” said MLC Expand chief executive Liz McCarthy.

She added: “We’ve been using AI and robotics in our business for more than six years, so it’s exciting to now bring the scale and efficiencies we’ve gained directly into advisers’ offices.”

For Shadforth Financial Group CEO Terry Dillon, servicing more clients is a key function of introducing these efficiencies and scale, which are important gains if practices are looking to help close the advice gap.

“Today we service about 10,000 clients across the country, but we have a very clear public plan to double the number of Australians we help with advice by 2030,” Dillon told ifa.

“If we're going to do that, there's obviously lots of demand for advice, but if we're going to do that, we've got to create capacity for our advisers and our support staff because they're physically spending more time in the administration of advice than in front of clients.”

He also communicated that with this integration, the client-adviser relationship can only be enhanced.

“We've adopted technology and had an uplift in client performance, client outcomes and our ability to keep portfolios exactly where we want them,” the CEO explained.

Dillon added: “There's naturally going to be apprehension about how AI can be used. But the way I see it is that it will replace the important but repetitive manual work with more meaningful work.

“This means more time with clients, more time on strategy, more time for our advisers and our support staff serving our clients, getting deeper into their lives rather than completing manual processes.”

As Dillion acknowledged to ifa, Shadforth as a practice targets high-net-worth clients, which is not a sustainable practice going forward if firms want to close the advice gap.

“We know there’s a financial advice gap in Australia, and as a business we’re constantly exploring ways to free up our advisers’ time to be able to service more Australians,” Dillion explained.

“By automating manual processes, we’re freeing up valuable time for our teams and helping more Australians benefit from the power of quality financial advice.”