Blue Chip Issue 82

FINANCIAL ADVICE

FINANCIAL ADVICE Business efficiency is key to a great client experience For most financial advisors, providing a superior client experience is a primary objective to ensure both client satisfaction and business sustainability and growth. 60 www.bluechipdigital.co.za

FINANCIAL ADVICE Critical to achieving these objectives is identifying gaps, bottlenecks and stress points in business processes In looking to identify where that dilute the customer experience and potentially harm the business. While a sound business is reliant on efficiency gains may lie, a good robust processes, financial advice is ultimately about people. An infrastructure that supports business scalability and solutions that starting point would be to improve client outcomes, without sacrificing the human element, is essential. All this needs to be achieved within the framework of focus on recurring mistakes. ongoing industry education and training, regulatory change and compliance pressure. Michael Kitces conducted research into How Do Financial Advisors A few of the standout areas highlighted by the survey are Actually Spend Their Time And The Limitations Of Productivity? He particularly interesting. Client profitability, including a profitable 2. SURVEY FINDINGS concluded that the typical advisor spends no more than about 50% way to service younger clients who are mostly accumulating of their time on direct client activity-related tasks and scarcely 20% wealth, but also operate differently in the way they engage with of their time meeting with clients. He goes on to suggest that there their finances and with advisors, is an aspect many advisors are is room There for is a significant considerable increase value in in hearing advisor from efficiency. top advisers about their grappling challenges with. and successes Newer entrants in delivering to the professional job market advice, or people and in who running advisory practices. A special word of thanks to the more than 150 advisers from South Africa, the UK & Ireland who completed the Pinpointing business inefficiencies and stress points is often the are in the early stages of their careers may work differently from survey, and the 20 advisers who participated in a virtual roundtable discussion, for their valuable insights. easy part. The real challenge lies in attempting to address them what many advisors are used to: from home or in another part of when one considers the amount of time spent on the administrative the world compared to where their employer may be. And 9 to 5 tasks The required objective to simply of the keep survey a business was going. to identify: Unfortunately, this for a single employer (with a retirement fund) for a lengthy period problem is amplified when inefficiencies exist, and more time is may no longer be the norm. The approach to saving and demands • Key areas in which advisers would like to drive business improvements and efficiency gains spent on compensating for them. on accumulated funds may be different, with needs often focused A • survey The conducted aspects of being by PortfolioMetrix an adviser that cause generated the greatest responses concern more on the immediate or shorter time horizons. from more than 150 advisors from South Africa, the UK and the A primary concern around a profitable “young client” proposition Republic Participants of Ireland. were Further asked insights to select were the top obtained three areas via a in roundtable their business centres in which around they would ensuring like to that see clients improvements are adequately or greater serviced efficiency and discussion gains from with a predefined 20 advisors. list. The They objectives were further of asked the survey to specify and their that level relationships of concern against are built. a comprehensive The use of technology list of aspects may that support relate a roundtable to providing were financial to identify: advice. more cost-effective way of addressing the profitability aspect, but • key areas in which advisors would like to drive business the risk remains the potential loss of the vitally important personal improvements and efficiency gains touch. The answer may lie in a differentiated service model for • the aspects of Results being an of advisor the survey that cause are shown the greatest in detail concern below separate with the client key segments. takeaways However, as follows: advisors should be cautious of Click here to reference the survey questions at the pitfalls end of of this creating document. what may amount to two or three different The infographic below highlights the main results of the survey. businesses or vastly separate service offerings as this would Desired Efficiency Gains Greatest Adviser Concerns 34% Creating business scalability without adding extra staff The area in which 34% of respondents felt they stood to gain. 26% A profitable service model for younger clients Stood out by 26%. 31% Preparing client review reports / packs 31% resonated as an aspect that could be done more efficiently. 24% Compliance requirements and pressures Stood out by 24%. 28% Finding new clients This was highlighted by 28% as requiring improvement. 23% Unprofitable clients Followed as an aspect of great concern. 25% Technology related frustrations and client information gathering and recording Each was indicated by 25% of respondents as areas that lacked efficiency. 22% Succession planning Followed as an aspect of great concern.