An alternative option to reduce the pressure on squeezed profit margins is to improve efficiency and keep costs down without undermining their quality of service.
It is well established that effective adoption of technology can improve efficiency and overall business performance while reducing the cost of servicing clients.
The evidence is compelling: the most recent Intelliflo e-Adviser Index, which analyses a firm’s business metrics alongside its use of Intelliflo Office, shows that advisers who use all parts of the system generated per adviser 54 per cent more revenue and 76 per cent more ongoing revenue than firms using only the core functionality.
Our recent Advice Map of Britain, which used data from 3mn advised clients to identify who and who is not taking advice, found several factors impacting the likelihood of someone seeking advice.
It highlighted a broad swathe of individuals who are not currently served by the financial advice industry, including those in certain locations, single people and the young.
By using technology more extensively in the advice journey, firms can extend their service to reach different demographics, helping more people build financial resilience.
Embedding technology into the advice journey enhances the important human element of the process, by taking care of the relatively straightforward but onerous tasks.
This frees advisers to focus on providing clients with greater support and reassurance, which are valued even more highly when times are difficult.
Allowing advisers to concentrate on the planning and emotional aspects of the financial advice process, and leaving technology to pick up the admin burden, boosts client retention while also managing costs, allowing the firm to meet client expectations both now and in the longer term.
The outlook may be challenging for the coming year, but technology provides an opportunity for advice firms to help people navigate the current climate and at the same time secure their own future.
Nick Eatock is chief executive of Intelliflo
