The top tech advisers are using to be more efficient and to see more clients

Take-outs:

• Technology is providing real solutions to advice practices to help them be more efficient, compliant and to deliver a better client experience.
• AI is being utilised to prepare file notes and prompt advisers on compliance and disclaimers when reviewing documents, while video and web applications are streamlining SOAs, pre-populating documents.
• Client portals offer a frontline tech offering to clients, enhancing data security and engagement, and meeting their expectations on how they dominantly interact with their service providers.

Integrating technology solutions into an advice practice improves practice efficiency and productivity, driving enhanced client experiences while also enabling client growth. The 2023 Investment Trends Adviser Technology Needs Report found on average an adviser serviced 120 clients, up slightly from 113 in 2022.

To meet the growing demand for advice while adviser supply is low, emerging technologies can be leveraged to make advice practices more efficient and empower better financial futures for more Australians.

On a recent panel at the Ensombl ALPD day, Fintalkr Founder and CEO, James Wartho, Finura Joint Managing Director Aron Satchell and myprosperity CEO Peter McCarthy, shared what they are seeing in terms of how advisers are making the most out of the technology solutions available.

Artificial Intelligence and Large Language Models can speed up advice

Artificial Intelligence (AI) is being leveraged across the industry to enhance productivity, with advisers using various large language models to condense and summarise transcripts from client meetings in seconds and to convert one-hour meeting into a 6–7-page file note that is 90% correct.

Fintalkr’s James Wartho said the advent of such technologies does not mean financial advisers are replaced but maintain the trusted relationship with their clients.

“Large language models are not the be all and end all, but they sure can help.” Wartho estimates that using this technology can save advice practices half-a-day to a full-day a week of administration in their practice but notes the importance of reviewing all information generated in this way.

SOAs benefit from tech efficiencies

Video and web applications are being used by advice practices to enhance engagement, while tools like FinTalkr can be used to streamline SOAs by generating file notes from client conversations.

Wartho commented that general biztech AI tools can help boost productivity, but they are unlikely to move the needle from 120 clients per adviser to 230 or beyond which is the norm in the UK. The other major callout was to be careful where you send your data. A lot of generic AI tools are hosted in the US where the data protection rules are low. Sending your clients data overseas incurs a lot of risk and breaches Australia’s strict data privacy laws.

Independent provider of tech services, Finura works with financial advisers to help them navigate and integrate solutions into their business and notes there are some common themes in advice and technology.

Finura’s Aron Satchell said the move to tech requires a shift in thinking to digital advice and while this often starts with focussing on processes, client experience will lead this discussion to client portals.

The growing importance of client portals

Recent regulation in the UK has meant advisers have had to find more secure ways than email to communicate sensitive information, this is becoming increasingly important here in Australia. Client portals are a safe and secure way for clients to engage with their financial adviser and other trusted professionals, providing a streamlined and efficient customer experience.

According to myprosperity’s Peter McCarthy, client portals are an effective way to deliver data security and trust but also to deliver a client-led value proposition. “Powerhouse firms are working backwards from the client experience,” he said.

Consolidated logins where customers use one login to access a range of services is now the norm – think banks, MyGov, and the ATO.

Top tips for integration

With technology options expanding and adoption increasing, what are the best ways to put solutions in place:

• Focus on a few changes rather than many
• Conduct due diligence as a hygiene factor to highlight need and capacity for change
• Engage relevant teams who will implement the change
• Allocate adequate resources
• Assign ownership to drive the result
• Utilise client meetings to introduce clients to the technology if relevant e.g. client portal.

Tips compiled from HUB24 panel at May 2024 Ensombl All Licensee PD Day