Advisers and providers using digital letter of authority processing are already seeing the benefits, according to Origo.
These include realising substantial cost savings on the time and resource it takes to handle this administrative task, making providers easier to do business with, improving the relationship between advice firms and providers, positively impacting net zero targets, and most importantly, delivering better service to consumers.
Origo, which offers the Unipass Letter of Authority, compiled 7 ways going digital for the Letter of Authority service has benefitted provider and adviser businesses to date.
1. Improved adviser experience: Using a digital service both improves and simplifies adviser interactions with the provider. The LoA process has long been a bane of advice firms and providers with digital processing are actively taking steps to improve this. In addition, clients can now have a faster and overall better onboarding experience with their advisers, improving advice firm customer satisfaction
2. Reduced costs: Significant cost savings can be made by both advice firms and providers – up to 50% has been reported by providers. The main time costs incurred are typically in the vetting of the LoA requests received. Through a digital system the time taken to verify and progress requests is significantly reduced, impacting the costs. This is enhanced in Unipass Letter of Authority as it incorporates Unipass Identity, Origo’s secure identity system. Further savings are made in the significant reduction in follow-up calls and requests (see below).
3. Improved business flows: A digital experience is now expected of businesses. It can no longer be acceptable for providers to be asking intermediaries and consumers to complete paper forms and post them. Advice firms are experiencing a process that is faster, more streamlined and easier to use.
From the provider perspective, those who improve their processes and deliver a quicker, more efficient and consistent LoA experience, are making doing business with them as easy and cost efficient as possible – in turn achieving much higher levels of customer satisfaction.
Providers who fall behind in digitalising their services could begin to see that negatively affect their bottom line.
4. Trackable process: With a digital LoA process, providers can give advisers up-to-date information on where the request is in the system so they can keep their clients advised.
5. Reduced follow-up calls: The transparency of the digital LoA means the number of follow-up calls advice firms need to make to check on progress is significantly reduced, generating huge time and cost savings for both providers and advice firms alike.
6. Improved brand and reputation: Providers who show they are ahead of the curve in delivering a faster, smoother LoA journey for advice firms, are building valuable brand credibility. Likewise, advice firms are benefitting from being able to deliver a slicker and more cost-efficient client onboarding process.
7. Net zero friendly: Providers and advisers are able to significantly reduce their carbon footprint through reduction in the need for paper and postage, helping them in their net zero targets.
Anthony Rafferty, CEO, Origo says: “The impact of the antiquated processing of letters of authority on provider and adviser businesses is well known.
“But as with any business case, what providers need is evidence that when they implement a digital Letter of Authority service it will give them a range of benefits to make the investment worthwhile.
“The proof of the pudding is in the eating. There is a huge demand among advisers for a reliable, consistent and cost-efficient LoA service. While providers tell us what they need to see is real world results, using a robust and secure technology they can trust to deliver results.
“We have round 5,000 advisers signed to use Unipass Letter of Authority, demonstrating the strength of demand for providers to deliver a digital LoA. The service is already being used with advisers by major companies such as Aviva, Legal & General, Royal London, James Hay, LV= and Scottish Widows platform, among 16 now signed to or on live adoption of the service.
“While the LoA is just one process among many, it is part of an industry wide challenge to bring financial services fully into the digital age. We are all looking to better serve more people. If as an industry we can be seen to be more accessible and efficient in helping to deliver a better and brighter financial future for consumers, that can only be good for all concerned.
“We are looking forward to every provider seeing the benefit of digitalising their LoA process and others, not only for their business but for the wider financial services industry as a whole.”
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