Advances in adviser technology, including artificial intelligence (AI)-empowered systems and processes, are set to deliver potentially huge efficiencies and cost savings for financial advice firms. But the benefits could be wiped out if the fundamental processes feeding into this new tech are not keeping pace with the market, says Anthony Rafferty, CEO, Origo
Rafferty says: “A process is only as good or as fast as its weakest link. The value of an accelerated suitability report writing process for new business, for example, is undermined if providers are forcing advice firms to use paper, post and fax in order to become authorised to represent the new client.
“In effect, outdated processes are like a ball and chain on advice firms wanting to achieve the operational efficiencies which adviser tech now make possible. Digital/automated processing should now be de rigueur across the industry for all processes affecting service to the end consumer.
“Product providers have been in the firing line from financial advisers and their teams over the past 2-3 years, for slowing down their operations. The lang cat has produced a number of reports now on how the lack of integration for essential processes and a reliance on non-digital systems, are not only hindering advice firm operations and costing them money, but importantly, hampering firms in their ability to service to their clients.
Rafferty highlights the letter of authority process as a case in point. “Letter of authority applications, as an example, remain largely slow, paper-based processes within provider back-offices, taking weeks and sometimes months to complete. This causes unnecessary delay before an adviser can really start helping their new client. Hardly an advert for a 21st century industry.”
Rafferty added: “These are well-known industry problems for which solutions exist. As we see advice firms up their technology game, bringing in new digital/AI-based systems and taking advantage of the benefits they offer, so I anticipate we will see advisers and paraplanners become even more vocal about processes that cost them money and stop them helping their clients quickly and efficiently. It would not be a surprise to see advice firms seriously consider which providers to use based on how their processing capabilities affect the adviser’s ability to provide the best outcome for their client.”
The lang cat written reports:
LoA Process: Just Fix It Already
Main image: joel-filipe-jU9VAZDGMzs-unsplash
