Client portals are emerging as a secure alternative, enabling financial advisers to share documents and communicate with clients while reducing cyber security threats.
According to the Australian Signal’s Directorate Annual Cyber Threat Report 2023-2024, more than 1,400 reports were made to law enforcement last year due to business emails being compromised. This led to financial losses, which, on average, were over $55,000 per incident.
Given most financial advisers use email to communicate with their clients, leveraging technology solutions such as client portals to enable more secure engagement is emerging as a key business priority.
Integrating a client portal
As at 31 December 2024, technology research and solutions consultancy firm Finura Group found that 69 per cent of financial advisers still send documents such as statements of advice via email.
Based on myprosperity’s experience of effectively integrating into advice practices, the key to a smooth transition from email is gradual adoption and a clear value proposition for clients.
To do this, financial advisers need to introduce the client portal’s functionality in stages and can start by asking clients to share and sign documents within the portal.
Communicating the benefits is also important. Simply asking clients to switch is not enough; they need to understand why it matters.
Getting the timing can also support a smooth transition. Smaller financial advice practices tend to introduce the topic of client portals with their clients at annual review time, where they can provide some further context to clients during the discussion.
However, larger businesses that want to transition their clients away from email simultaneously tend to announce the change and benefits via newsletters and other client communications.
Highlighting real-world cyber threats can create urgency and make the risk more tangible. Providing a call to action such as contacting their financial adviser or reaching out to a dedicated customer service support provides another engagement opportunity for clients before registering for the client portal.
This helps to prevent confusion for clients which can create greater work for practices and potentially require even more resources to get the transition back on track.
Case study – Prime Advisory
Prime Advisory’s transition to a client portal was prompted by demand from clients for a safer way to transfer documents and its licensee’s desire to see less information shared over email.
However, the business understood that the wider benefits of client portals made them a compelling customer solution.
“Data security, all documents in the one place, better client experience, streamlined way of doing business – it’s a good story for clients,” said Angus Rodgers, director at Prime Advisory.
In October 2024, an email was sent to all clients notifying them of the change and asking them to download the client portal application. A client portal page was established on its website to make it easy for clients to log on.
The business also committed to starting each annual client review meeting in December 2024 with a conversation about the client portal and a prompt to download the app. This is recommended as best practice by myprosperity, and it paid off for the business, as by January 2025, all clients had downloaded the app and the client portal had almost 400 active users.
Conclusion
Client portals are rapidly becoming a core tool for secure collaboration between clients and their financial professionals.
They can effectively replace insecure email exchanges of personal information and data and provide a simple touchpoint for clients and their financial advisers to communicate. In addition, a centralised communication hub enhances the client experience simplifying interactions.
For financial professionals looking to future-proof their practices, adopting a client portal is not just a security upgrade, it is a strategic business decision.
Greg Hansen, executive group strategy, HUB24.
I completely agree that adopting client portals is essential, especially with the increasing cyber threats linked to email.
However, it’s crucial to emphasise that these portals must be designed with the client in mind. Many existing portals focus more on advisers, resulting in systems that clients find cumbersome and challenging to navigate. This can hinder adoption, as Wayne has pointed out.
User-friendly designs that improve the client experience, incorporating features such as easy document uploads & storage, and clear communication channels are essential.
By prioritising usability, advisers can enhance security and build stronger client relationships, solidifying the role of client portals in the financial advice industry.
A client portal is a fantastic idea in principal. Getting clients to go through the protocols required for them to access to one is another thing altogether!