According to Investment Trends’ 2019 Planner Technology Report, nearly half (43%) of the 1,030 financial planners surveyed for the research are facing obstacles in providing affordable advice, up from 33% in 2018.
Part of the reason for this, according to Investment Trends research director Recep Peker, is that “Financial planners are striving to widen their pool of eligible clients as a host of macro challenges impact their bottom line.”
“For years,” he continued, “planners have struggled to grow their client base as they face a shifting regulatory landscape, the reputational impact of the Royal Commission and uncertain market conditions. In their quest to lift client numbers and practice profitability, more planners are focused on lowering cost and serving clients in an affordable manner.”
So how are they doing this? The report explained that part of the solution is the consolidation of platforms, which is reflected in the fact that back in 2009, advisers were using an average of 3.5 platforms for new client inflows. In 2019, this figure has dropped to 2.1.
“The platform landscape is changing at pace,” Peker said. “Post-Royal Commission, the most cited platform selection driver is now fees, with low overall cost to clients (57%) overtaking efficient admin (45%).”
It’s also worth noting that, as per the report, advisers are increasingly looking for mobile access and client engagement tools. Currently, these are the only two areas where industry-wide satisfaction levels were below average.
“Planners’ satisfaction with their planning software’s mobile access and client engagement tools are below par,” Peker explained, “highlighting their desire for tools that facilitate greater collaboration during face-to-face client meetings.”
“This desire is also reflected in their interest in widening their online client portal capabilities. Almost all planners (94%) believe their clients can benefit from access to an online portal, most often through greater engagement, transparency, and keeping them informed and educated.”
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