The fast-paced nature in which technology is changing our daily lives cannot be understated. These changing winds are also blowing strong within the financial services industry and making professionals think a little deeper about the impacts of technology and the progress of their business.
What the research says
A report by Deloitte back in September 2012, titled Digital Disruption – short fuse, big bang predicts professional services firms within the next 2-3 years could have 30-35 per cent of their business revenue impacted by technology. What would this kind of impact mean to you and your business? More importantly, how do you think you should respond?
The SMSF industry, whilst enjoying strong growth is rapidly changing, driven by technology and the shifting age demographic of new entrants as trustees. With a growing number of self-directed and younger, tech-savvy trustees, there is an increasing demand for technology to provide readily available information and tools to empower individuals to make decisions (and hopefully the right ones).
What does this mean for you?
It is expected that technology will again make significant gains in 2014 and be a catalyst for change across many financial services organisations. Expect to see a growing adoption of cloud technology within the SMSF industry, providing greater collaboration with trustees and service providers. This evolving technology is already providing greater integration of various services providers, which ultimately help professionals to improve both risk and return within their business.
The need to build a strong social presence is also growing in importance – you must ensure that you have a clear purpose and plan in how you will use social media and deliver on key objectives. Research supports an increasing number of trustees are sourcing information about SMSFs and investments through media and online. Therefore, the need to have a strong online presence through your website and carefully selected social media channels is crucial. It’s not about the number of likes, fans or connections, but the depth of two-way conversation you have through these channels.
Finally, your technology decisions must absolutely be mobile. The YellowTM Social Media Report 2013, which looks at what Australian people and businesses engage with social media, indicates 67 per cent of Australian social users access sites on a smartphone. It would be safe to assume these statistics will only grow throughout 2014.
What are the opportunities for you and your business?
This evolution with technology can provide many organisations the opportunity to reconsider their current business model, better define their customer segment and assess their existing value proposition. In regards to the SMSF sector, it may provide many accounting professionals the time to reconsider pricing models for compliance and administration services as technology fundamentally changes how work can and should be done. For financial planners, this evolution could similarly extend to you around pricing and services.
This journey is so important across all financial services businesses right now. In a world where technology now dominants so many aspects of our lives, it is important that you have a strong understanding on the impacts of technology to your industry and most importantly, how you can capitalise on the opportunity in the years ahead.
Aaron is a leading SMSF industry expert, blogger and a No More Practice expert. He is also the managing director of The SMSF Academy.
