Speaking at IMAP’s InvestTech 2017 conference in Sydney, Netwealth joint managing director Matt Heine said the financial advice process was currently very inconvenient for both clients and advisers.
“When you think about advice, advice has friction the whole way through it,” he said.
“The whole process is friction, there’s actually nothing about the advice process that’s smooth, and that really starts to accumulate around client strategy, client management, and investment execution.”
Conducting a fact-find is one example of this, Mr Heine said, noting it’s presently “the most cumbersome part” of the process despite being the first interaction and adviser has with a client.
“It’s the first piece of experience that our clients have with us as an adviser, and it’s horrible,” he said.
Mr Heine said there are already a number of technology offerings that can make this and other processes considerably faster and smoother for both parties, but “no-one’s actually adopting them”.
“I think the biggest thing holding the industry back is actually the people in the industry, and we can keep trying and keep pushing these ideas but if people aren’t willing to try new things and adopt, then we’re going to get left behind,” Mr Heine said.
IFA / Matt, please clarify which Fact Find technologies you recommend ?
I for one don’t find many clients willing to complete a fact find themselves.
And if they are instructed to bring in all Super, Insurance statements, Wills / PoA and a good basic summary of other Assets and Liabilities, the asking basic financial information questions can be vastly reduced and allow you time to explore how each asset fits into the picture and get to know the client and their existing situation and goals.
As for the world of Fintech – for 15 plus years we have heard constant dreams of “Straight Through Processing”, etc from the Admin / Wrap Platforms that were going to integrate with Fact finds, Advice software, Application Forms, etc and it would all be a seamless process.
Still Waiting ……………………………….Matt.
Hi, There are numerous ways this can be tackled and many solutions are available including survey tools and/or as I discussed yesterday Chat bots and integrated banking feeds. In relation to other solutions available, by way of example we launched STP with xplan 2 + years ago whereby an adviser could do an SOA ( pre-populated by online fact find), push the data directly into our application module and then send to a client for e-sig. No re-keyign of data and no paper work. To date we have had less than 10 applications go through. Likewise in the next 2 weeks we are lauching an Automated ROA tool that faciliates bulk rebalancing across an enture client base and generates an online ROA with online acceptance and already we are receiving feebback that advisers want to print off a version for their client to sign. We will be supporting this but creates friction in a process that was designed to remove it.
Spending more time with clients and adding real value is always the goal and to do this the industry needs to leverage technology far better and be open to changing how things have been done in the past.
I would assert most advisers (who have choice) will jump at new technology when it comes together in a seamless way to delivery real value by improving efficiency and enriching the client experience. The problem with MOST technology (even the newer offerings) is there is very little connection/integration … despite all the talk. However, within 6 – 12 months, I believe a small number of platforms and fintech partners will demonstrate what a true ecosystem can deliver. Modern adviser software will deliver friendly client on-boarding (fact find) through a rich client portal. Clients’ financial information will be kept up to date via connections with platforms and PFM systems (e.g. Moneysoft). Sophistic modelling tools (e.g. Investfit) will accept input data and send reports back for insertion in advice documentation. And modern platforms will enable implementation without needing to manually fill out any paperwork. If you’re an IFA who can choose technology/platforms/products, then 2018 will be an exciting year. Watch this space 🙂
If the majority of financial planners belong to AMP or one of the big four banks licensee, then as a software provider you are not going to have innovation at the top of the ladder. What is holding software innovation back is this consolidation. You can’t keep blaming advisers themselves. Software programs like Xplan, (a beast) Adviserlogic (a work in progress stay clear), Midwinter (almost there but not quite) are all designed for certain dealer groups in mind, COIN for AMP etc and so a certain outcome is always going to be produced and it’s holding back advice. Australia is about 7 years behind a lot of other countries.
I believe technology is amazing and can dramatically streamline process however the cost barrier to purchasing or leasing the technology is out the budget of a small practice such as mine.