Is advice technology increasing your cost to serve?

Practice costs incurred while serving advice clients are at an all-time high with KPMG recently assessing the cost to deliver a new piece of advice from end to end as $5,335. This – which vastly exceeds the cost a client – is typically charged at $3,660. KPMG has called for less red tape as a result of this finding, which we support, but we also believe that technology and platform providers need to offer more support to planners throughout their practice.

According to IRESS’ inaugural Advice Efficiency Survey (in partnership with Business Health), it highlighted that it still takes advisers an average of 14.6 hours and the use of two to three advice software packages to generate that advice. This excludes the additional three platforms that each practice utilises (on average) to execute and administer the recommended portfolio. Given that the practice is typically asked to manage and monitor the integration of these six technology solutions, the feedback we receive from planners is that re-keying of the same data multiple times is rife.  

Analysis of the advice process shows the 5 key areas of the planning process which attract internal practice costs are:

1. Client data collection
2. Cashflow modelling
3. SOA generation (editing)
4. SOA presentation
5. Advice implementation

How can an updated technology stack help?

Advisers using DASH enter client data once which is shared across the whole financial planning process. They model complex scenarios (e.g. multiple entity strategies) utilising optimisation engines rather than a trial-and-error-based models slashing paraplanning time. Digital advice templates and an integrated platform for automated account opening conspire to radically lower costs. In fact, our analysis shows that the average advice process is typically delivered in DASH for $2,918 and is now a profitable enterprise vs the typical charge of $3,660. 

Client Testimonial

Technology providers within the financial services sector are often approached with a healthy dose of scepticism, so it is important to speak to advisers who use the system and are achieving remarkable results.

“We have used a number of providers in the past, but DASH is a standout, providing a complete advice solution, which we view as the ‘holy grail’ for our practice. Their seamless end-to-end software and platform offering covers everything we need in one place, from MDA management, where [we] run our own models, client data collection, digital SOAs, and our CRM.  It's a win for planners.“

Mark C, Caringbah. Self-Licensed Planner

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