In a contributed column, myprosperity chief executive Stephen Jäckel said the royal commission has left many advisers searching for answers and a new way to survive with old commission models fading, with clients calling for more transparency and a better customer experience.
As a result, advisers attempting to build a business that’s future proof need to be addressing these changing needs and helping clients build wealth and better outcomes for their families.
Further, Mr Jäckel said it’s no longer OK to just take a retrospective look at how a household has fared over the financial year, and that the adviser-client relationship is becoming continuous and forward-looking.
“Communication expectations have changed. Clients expect ongoing check-ins that are based on live data and advice that sets them up for the next opportunity,” he said.
“In practice, this means the very content of a meeting has transitioned from an update of where a client is at to a conversation around where a client wants to go to.
“Live data feeds means everyone can track their progress in real-time and the whole meeting can be forward-looking.”
Mr Jäckel also noted the “mass of opportunity” for advisers to benefit from artificial intelligence and machine learning, both of which are going to impact the financial advice industry.
“Many advisers and planners are concerned that these advancements will have a negative impact on their business – taking away the need for their services and eating into their client pool,” Mr Jäckel said.
“However, when it comes to AI and machine learning, there is a mass of opportunity for advisers to benefit from. The technology can streamline relationships, processes and enable them to transition towards using data to be more proactive.”
Myprosperity was named Financial Advice Innovator of the Year at the 2018 Awards for ifa sister publication Fintech Business.
Really ?? live data feeds . Most of my long term clients want an annual update and don’t care if it was printed up at the start of the month or yesterday .. then again lets spend $7,700 for more software as this is the new way forward ( For those that can’t sell) !!!!
Advisers have an enormous potential to connect with a new source of clients by forgetting old fears of Fintech’s taking their space. Financial Mappers Pro is a product that allows advisers and clients to work together, sharing financial plans and allow the client to actually make a copy of the advisers plan and then look at the plan in detail. How’s this for a new idea – the client can enter all their detail, list all their financial and personal goals, complete the broad brush strokes of the plan and then ask for advice. This lowers cost for both the adviser and the client and gives the adviser access to the mass market who require advice but have limited financial resources to pay for that advice.
“when it comes to AI and machine learning” = FinTech Hype. When AI/Machine Learning eventually become mainstream, they will still require the data to be easily captured/stored/shared or their value will be limited. Forget AI … do you have APIs?
Untill AI can give a face to face review then there will be a need for advisers.
so true!!!!