Ever since I was a financial planner, advice creation has always been the pain point. The core problem that still remains, is the time and cost of advice creation. The problem is that the current advice process is linear. Financial planners must complete a set number of advice documents in a set order to deliver advice. There is a large dependence on multiple people and technologies to create one single piece of advice.
There are three key areas that will be disrupted by technology over the next five years. Like other industries, the first disruption affected by technology will be people including internal administration staff and Paraplanning businesses. Paraplanners’ time is better spent on strategy development with the financial planner, over document generation. And so, as technologies make Statement of Advice production more efficient, dare I say, almost instantaneous, Paraplanning businesses will need to adapt to other specialised roles in strategy development.
Multiple Data Entries
The second disruption I see is the minimisation of multiple entries of repetitive information across multiple advice documents. The process of entering information into a Fact Find, only to repeat it in the Strategy Paper and Statement of Advice seems redundant. Technology solutions need to work towards minimising the amount of repetitive data entries by simplifying the number of times financial planners input information – all of which can be automated through technology.
The third and final disruption I see in the industry is minimising the technology stack used by financial planners to create advice. The biggest barrier to this innovation, that I have discovered since I transitioned from a financial planner to Asendium, is the frustration of having to log in and out of multiple technology solutions to create advice. Efficient integrations between technologies are key to minimising this barrier. Newer CRMs are efficiently integrating with specialised technology solutions to create a single login technology stack for ease of use for financial planners.
As we move into a new era of financial advice, let’s work together to innovate advice creation to make it more simple, accessible and affordable for Licensees, financial planning businesses and their clients.