Client experience key to a successful practice

Speaking at the Institute of Managed Account Professionals (IMAP) Advice in Action 2023 Conference in Sydney in July, Andrew Mathie, general manager distribution, NSW & ACT at Praemium, said that through efficiencies provided by managed accounts, advisers can use that time to improve their practice.

“We know managed accounts are an efficient, compliant, and scalable way to service your clients and grow your business. Recognising your business is an asset is important to growing that asset,” Mr Mathie said.

Referring to research that Praemium conducted with Business Health, which surveyed 224 advice practices nationwide, he said there were common practises among successful practices that utilise managed accounts.

“The most successful managed account firms around the country, we noticed, shared a common set of what we call success drivers. You can also call them profit drivers. Succinctly, they take a strategic approach to their business,” Mr Mathie said.

“I’d question the value of any business and its long-term viability if it’s not regularly engaging with clients via various forums to seek out feedback.”

Another key area is for advisers to work on their business, which Mr Mathie said is closely linked with the use of managed accounts.

“Our research indicated that firms leveraging managed accounts aren’t just operating their business, but innovatively refining. They have a very clear picture of the future success, and they align their strategies accordingly,” he said.

“These firms demonstrate an openness to insights and advice from outside their organisation. The correlation between an increased use of managed accounts, a profit uplift isn’t random. It’s not coincidental. Managed accounts are truly a powerful differentiator, helping elevate a business.”

The Praemium research included a number of insights on what clients want from their adviser and what they value. Mr Mathie said that having an adviser that “gets” them was important to 91 per cent of clients, while 71 per cent require an adviser with shared values and/or political leanings.

It also found that, despite a number of changes to the way advice was delivered throughout COVID-19, 70 per cent of clients want to meet advisers face-to-face, while only 17 per cent want a digital only relationship. Mr Mathie put this down to a level of screen fatigue.

“But do not underestimate the importance of having a digital offering and how you can actually engage with clients not just today, but your future clients,” he said.

Mr Mathie added: “We know next generations of customers, that could in all likelihood be the children of your current customers, want holistic service. Managed accounts allow you to deliver through customised investments.

“Those who are running managed accounts are seeing the benefits and the ability to actually tailor all the way through to even actually having a different investment philosophy for different segments of your clients.”

Mr Mathie added that the research found that 40 per cent of clients preferred self-service over human contact. It also found that 50 per cent of clients believe their adviser should offer a digital solution and 60 per cent of emerging high-net-worth investors would welcome the ability to access and manage their whole portfolio through a single digital experience.

“Technology is an enabler, think about how you use it in your business,” he said.