Advice firms, large and small, have discussed with me over the years, and especially in the last 12 months, how to minimise time, maximise engagement and deliver advice to the right people at the right time.
Whether large or small, all businesses I have had discussions with over the years, and especially in the last 12 months, are looking to solve these challenges:
This is especially interesting when you consider that points 1 through 5 align with the financial planning process through: a prospects engagement with their finances and goal identification, financial appraisal, the SOA and the final implementation. This represents not only the key parts of the financial planning process but also those that provide the prospect with the most positive impacts on their psyche and sense of wellbeing.
The issue is that these steps take not only many hours to complete (about 5½ hours of face to face engagement and on average 21 hours in entirety), but these hours can be extrapolated over a year or longer as the initial inertia of a prospect (to get them to move from engagement with their finances, goal identification and finally into action) is elongated because of a host of reasons (time, timing, readiness, knowledge gap, trust, fear).
These challenges are also exacerbated (in regard to what is the solution for engagement, efficiency and compliance) by the focus on them by the regulator ASIC, who holds these parts of the process up as the most critical:
So the challenge as hitherto stated is how does one ensure they can minimise time, maximise efficiency, maximise engagement and deliver advice to the right people at the right time?
What is being done?
When we look at solving for this equation, we can draw from many examples in order of complexity and interestingly in the same order of “engagement effectiveness”:
Notably, AMP in Australia is building out solutions for 5, and once they solve for 6, 7 and 8, they could well become an unstoppable force in client engagement. But they will have challengers, as most, if not all, of the robo-shops have the capability and functionality for 5 and 8 (implementation) and virtual adviser offers such as Nationwide and Vanguard PAS have solved for 6 and 7.
The question therefore is, what are you doing about any of this?
Andy Marshall is the regional sales manager APAC of SuiteBox Solutions
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