Blue Chip Issue 86

BLUE CHIP PRACTICE

BLUE CHIP PRACTICE MANAGEMENT | Technology tech providers’ approach to integration options Pref er to encour age e xclusive use of own sol ut ions Actively seek out and execute integrations valuable to users Consider inte gr ation opt ions base d on demand The emergence of behavioural finance tools in third place on the “most valuable” list is a bit of a surprise this year. Tech providers’ approach to integration options. In the latter scenario, it’s realistically up to users to initiate integration discussions and, in many cases, this also equates to cost and effort commitments that most IFAs simply don’t have the inclination to get into. Some unfair expectations of the term “integration” persist, though, and it sometimes emerges as a bit of a magical catch-all prospect, making it difficult for tech providers to meet expectations. Many of the prerequisite issues that need to be addressed to make integration a successful experience still nag at our heels. More rudimentary problems, like transition from paper or manual business processes, are still prevalent as more than half of advisors indicate a low level of digitisation and fewer than 15% say they’ve mostly or completely converted from paper-based environments. than ever for businesses to map out a durable, adaptable technology strategy that enhances and supports a client servicing and operational model. average user ratings (of multi-function solutions with broad feature ranges vs purpose-specific solutions with narrow feature ranges) Features, functionality, or "usability" Average user ratings. Ease of implementation and adoption Return on investment or val ue f or m oney Inte gr ation options (data or other system s) Support and training Innova tion and fut ure - focus Specif ic f eature r ange 4,1 3,9 4,0 3,3 4,1 4,0 Broad feature range 3,5 3,3 3,3 3,1 3,5 3,3 process systemisation digitisation (transition from paper) Low Low Mid Mid High High Process systemisation vs digitisation. Even against a backdrop of sluggish digitisation, difficulty in selection and implementation and a value perception gap, advisors have been generous in their experience ratings of the tools they’re familiar with. Breaking these solutions into two rough categories – those that offer broader feature ranges (like all-in-one CRM and planning tools) and those that offer narrower, more specific features (like revenue administration or behavioural finance tools) – it’s clear that purpose-specific solutions still attract the most love at an average of just under four stars out of a possible five compared to an average of 3.3 stars for one-stopshop offerings. Never have advisors had so many options to choose from, within either all-in-one or best-of-breed model approaches. Therein lies part of the complexity, though, so it’s more important Jen McKay, Director, Linktank 58 www.bluechipdigital.co.za

FINANCIAL PLANNING | Education BLUE CHIP Financial planning candidates rank top five It was recently announced that the top five CERTIFIED FINANCIAL PLANNER® Professional Competency Examination candidates (for the June 2022 examinations) are alumni of the School of Financial Planning Law at the University of the Free State. By Leonie Bolleurs To become a CERTIFIED FINANCIAL PLANNER® (CFP), a candidate with a Postgraduate Diploma in Financial Planning or a BCom (Honours) in Financial Planning must, among others, pass the Professional Competency Examination (PCE) of FPI. On the right trajectory According to Henda Kleingeld, Programme Director of the Postgraduate Diploma in Financial Planning in the Faculty of Law’s School of Financial Planning Law (SFPL), they are incredibly proud of the candidates. “Being rated as the top five PCE candidates indicates that we are on the right trajectory with the outcomes and assessments for our diplomas. If the top five PCE candidates are alumni of the SFPL – we are doing something right. We have made many changes in our approach to financial education, and it seems like it is paying off. “We now need to ensure that we provide our students with the proper academic background and support to continue to excel. This will seal our status as the oldest and one of the leading educational providers of financial planning education in the country,” Kleingeld adds. Confidence in the qualification The PCE sets candidates on the path towards becoming CFPs®. The online exam consists of two case studies that test the candidates’ financial planning skills, knowledge and competent performance in the defined competency areas for financial professionals. In its PCE policy, FPI states that there are six financial planning components: financial management, asset management, risk management, tax planning, retirement planning and estate planning. It strives to prepare PCEs that will provide candidates with the opportunity to demonstrate core or professional competence at a standard appropriate for entry into the financial planning profession. According to FPI, the CFP® designation – an internationally recognised standard for financial planning professionals – gives consumers confidence that the financial planner they are dealing with is suitably qualified to provide advice and information and gives the assurance that they remain up to date with developments in the industry. First academic institution to offer diploma Kleingeld says the SFPL was the first academic institution in South Africa to offer the Postgraduate Diploma in Financial Planning and financial education has been its focus and passion over the past 20 years. “Keeping up with industry trends is very important to us. Our team of academics and industry experts assists us with maintaining a balance between the academic requirements and how they are translated into the workplace,” she explains. Kleingeld is of the opinion that the graduates who have passed their qualifications are doing exceptionally well in the industry, with many prominent industry leaders being alumni of the UFS SFPL. “The school has a reputation in the industry as being forward thinking and innovative. We keep our fingers on the pulse of industry developments, which get incorporated into our curriculum.” www.bluechipdigital.co.za Henda Kleingeld, Programme Director: Postgraduate Diploma in Financial Planning, UFS 59