Evolving client expectations causing strain for some advice professionals

Speaking on a recent episode of the ifa Show, founder and director of Forte Asset Solutions, Steve Prendeville, said the evolving expectations of advice clients are having an impact on the way industry professionals work – particularly when it comes to utilising digital platforms.

“I wouldn't just confine it to Millennials or Gen X or Y. I think everyone has embraced new technology and the use of apps and the Zoom platform and the like. We're very time-sensitive,” Prendeville said.

“I think it's building that engine so that people have the choice as to which offer they want. This is where I think the focus on pricing and service delivery is.

“The first meetings, in most cases, have to be face-to-face to create a relationship. But once the relationship is in place, then I think that's when you can use a lot more digital platforms for communication.”

Noting the shifting expectations of clients in recent years, Prendeville said evolving investment trends and communication needs have created challenges for fund managers that have made some aspects of their jobs much more difficult.

“The impact on funds management is that the vast majority are using managed discretionary accounts (MDAs), investment management accounts (IMAs) and the like. So, the messaging now is a lot more direct rather than general, talking about specific items within portfolios,” he said.

“The other side of it is, I think that the big issue for funds management is the continued rise of use of index funds and exchange-traded funds.

“I think for fund managers, it's a lot harder than it was certainly 10 years ago, and it's getting harder.”

Prendeville added that outsourcing and specialised servicing have become more necessary in recent years as the industry struggles with the lack of personnel, subsequently making time an increasingly important resource.

“Even for business development managers to be able to come into someone's office and sit down and take time. I think we are very time-poor as an industry. We're under a lot of strains,” he said.

“So, the adoption of outsourcing asset management is part of it. We no longer are sitting there and saying, ‘OK, I will pick this fund and this fund and I'll match it’. That doesn't happen anymore.

“We're trying to outsource as much as we can and control what we can, which is primarily the service delivery component.”

To hear more from Steve Prendeville, tune in here.