Ringing out those technology myths

Nick Eatock, chief executive of IntelliFlo, explains why advisers need to overcome their fears of technology.

In an increasingly technology driven world, the pace of change is staggering. Online social networks and tablets are just a couple of examples that have revolutionised how we communicate and do business. But how can an advisory firm best leverage technology and what impact does this have on traditional values focused on service? Beyond this, the RDR seems to introduce its own set of unique challenges.

The turning tide

As RDR fast approaches it would seem a collective sigh of relief is due. For too long, pessimists within the financial services industry have suggested this will signal the end for many small firms and that a fee-based model will be unsustainable due to the far greater demands placed on firms which will lead to both increasing overheads and reduced income. However more recently the tide has turned and now surveys and feedback doing the rounds, suggest the majority of advisers intend to be operating healthily in a post-RDR world.

Of course, at this stage we do not know exactly how RDR will impact us. Nonetheless, there is a strong argument that a fee-based model that improves transparency will be better for business and clients in the long-term. In truth, yes we will see some within the industry follow an exit strategy. But for those willing to embrace change, this will fundamentally be a time to capitalise on new opportunities.

Technology as a tool

To be successful, firms should be looking to leverage their expertise as efficiently as possible. Foremost, technology is a key tool here. To some this seems at odds to the traditional focus for many advisers, hinged on the core value of service and how to add that distinctive personal touch. Indeed embracing technology is seen by some as having negative connotations, such as:

● Too expensive
● Takes too much time to set-up
● Little tangible benefit to advisers

Whenever people come across technology in their lives, they adopt it at different rates. We can all identify with family members and friends that are first to buy the latest gadget while conversely others might refuse to use internet banking. But whether someone is fast or slow to adopt the new tools available, the key here is to make an informed choice based on a commercially valid business strategy rather than purely fear of change.

Whether an all encompassing back, middle and front-office system or an integrated platform solution, it is true to say any new technology or process will require a certain degree of up-front cost. Even if you sign-up for a ‘free’ solution or trial period, to maximise business benefit a firm will need to invest a certain degree of time and effort.

The reality is that with the right up-front commitment and attitude, most advisers will quickly reap the financial benefits. Not only in terms of significant every day time-savings but also better working practices and value delivered to clients. In this way the advantages will quickly stack-up and prove a fast return on the initial and ongoing investment. Simply put, the right technology implemented in the right way means less admin and more time spent with clients and prospects.

Finding the right solutions

Of course the question that quickly follows is what is the right technology? With so many different providers and solutions to choose from, it may seem a daunting task. Beyond the technology itself some options come bundled with immediate commercial ramifications and others, such as wraps and platforms, may even challenge the true independence of an adviser.

What does make sense is to find a solution that delivers immediate benefit now pre-RDR and for the future post-RDR world. Some of the key areas that well-implemented technology can cater to, include:

• De-risking your business through intelligent role-based management, from compliance to investment, sales to administration;
  
• Creating core processes and templates that can be used across a firm and accessed easily by all involved;
  
• Reducing manual effort and minimising of errors through built-in services such as valuations, commission reconciliation, as well as automated report generation and letter writing;
  
• Improving customer communications, whether through more engaging client reports, or allowing customers to log-in and obtain their valuations as well as keeping their own details up to date.
  

Integration

Critically, when comparing solutions talk to industry peers and do not feel bullied onto a path that does not feel comfortable. For example, some wrap and platform providers will argue that to survive in a post-RDR world their solutions are the only route to go down.

Yet there are full back, middle and front-office systems out there that integrate with platforms, all the while sitting centrally within an advisers business. Similarly consider how your independence may be impacted and whether the solution itself is from a committed forward-thinking partner there for the long-haul.

Technology can empower advisers to deliver increasingly complex financial products and absolutely tangible client benefits. Improved business processes and systems in turn free-up valuable time to focus on the real differentiator – individuals and the personal service and interactions they deliver to clients.