The jury may still be out on how exactly to engage people with financial advice. But one thing is certain, technology will play a central role argues IRESS’ Chris Pitt.
The jury may still be out on how exactly to engage people with financial advice. But one thing is certain, technology will play a central role argues IRESS’ Chris Pitt.
How to engage people more with their finances and engender a culture of saving remains front of mind for government and industry alike. Many agree that reducing the cost of providing financial advice, and thereby opening up the accessibility of professional advice to those currently in ‘the advice gap’, is a key step. There is less agreement on how to achieve this; however, there is little doubt that technology will play a pivotal role in making financial advice more readily available.
Firstly, today’s consumers are digital creatures. On-demand access to services and information is the norm and technology enables this. If you look beyond financial services at wider society, we will see consumers who expect to be able to “channel hop” and “click and collect” when buying goods and services. This is the standard behaviour of the modern consumer, and if financial services doesn’t keep up with this then it risks becoming out-dated, laborious and something many people will steer clear of.
With this in mind, to make advice more accessible it needs to be available to the consumer via multiple channels, including digital and face to face. And to provide this experience seamlessly, the adviser firm needs to be able to manage these channels within a single platform. This omni-channel approach is the cornerstone of building a digital advice strategy that consumers want, providing choice and flexibility. It can be extended and built on over time, adding to and changing the channels available to respond to consumer demand, but still ensuring the consistent advice outcomes and consolidation of data necessary to provide robust financial advice.
With an adaptable omni-channel platform in place advisers can make use of the array of digital tools available such as client portals, online fact-finds, screen sharing, secure communication channels, and social media to truly engage consumers. But, this needs to be done with a plan in mind. Rather than simply providing the consumer with options, the digital tools used should take them on a logical journey, making the process as easy as possible. By investing time in getting this right then financial advice can be made far more accessible.
IRESS is the leading software provider to the financial services industry, known best for its market-leading solutions including The Exchange, XPLAN, Trigold and MSO.
Its systems offer front, middle and back-office functionality for clients that range from financial service institutions through to independent operators.
IRESS strives for excellence in relationships with clients and industry bodies alike, working with the industry to face challenges and keep pace with industry developments.