The technologies speeding up the new client process

For most of the financial services industry, this has meant more phone and video conferencing, and a huge reduction in face-to-face meetings.

However, even before the current crisis hit, technology companies of all sizes were seeking to streamline advisers’ processes and improve the onboarding experience for all parties.

Fee compression across the industry has made it more important than ever for advisory firms to manage costs and find efficiencies – and fintech providers are keen to provide ways to do this.

Fact-finding

The initial factfinding work can be “one of the most time-consuming” parts of the onboarding process, according to Nick Eatock, chief executive of software provider Intelliflo.

His company has developed a “self-service gamified factfind” app to make it easy for clients to input their own information – improving the quality of the data as well as making the process more efficient for the adviser.

Many advisory firms struggle to onboard clients quickly and effectively, with face-to-face meetings still the de facto industry standard Brian James, Digital Clipboard

Intelliflo’s Intelligent Office and Personal Finance Portal link with this factfinding programme to allow advisers and clients to access and update information at any time, as well as store documents and communications securely using two-factor authentication.

Gamification refers to the adaptation of tasks such as saving into ‘games’ – giving users tasks or awarding points or achievements when they hit targets.

Yaela Shamberg, co-founder and chief product officer at wealth management software provider InvestCloud, says gamification is “key to helping the client build good habits”.

It can set a positive tone, as well as getting the client engaged early on.

“Many advisory firms struggle to onboard clients quickly and effectively, with face-to-face meetings still the de facto industry standard,” says Brian James, chief executive at Digital Clipboard, an onboarding app for advisers. “Web portals to collect and share information with clients in the early stages are becoming more popular especially with the changes brought about by COVID-19.”

SJP recently rolled out its Pre-Meet app across its adviser network to collate background information on new clients so advisers can go into meetings fully informed.

Views on investment risk and tolerance to loss are important elements of a client’s background to ascertain early on.

In recent years robo-advisers have been developing more sophisticated questionnaires to allow this to be done with little human interaction. Such technology is also available to advisers through services such as Evalue or some asset managers, including Royal London.

Compliance

Verifying a client’s identity can be more difficult without a face-to-face meeting. However, companies such as Credas and Digidentity allow secure remote verification, as well as anti-money laundering and know-your-customer checks.

Completing these processes securely and digitally can also cut out delays caused by waiting for paperwork to be delivered by post.

Credas saw the use of its remote identity verification services increase by almost 30 per cent in the first few weeks of lockdown, according to chief executive Rhys David.

Conor Murphy, chief executive of mortgage software provider Smartr365, says digital verification is a must for advisers as it can be “shared seamlessly between all parties in an instant” – which has proved its value during the lockdown, allowing business to “continue steadily”.

Alessandro Tonchia, head of strategy at tech provider Finantix, says advisers should look to automate data collection where possible. Shareholdings and occupational history can be obtained from public sources such as Companies House, for example, removing the need for clients and advisers to spend time filling in forms.

Mr Tonchia also describes the concept of a “digital lounge”, where information “can be managed and shared among adviser, client and other relevant parties”. A secure communication hub like this can allow compliance staff to obtain information directly from the client while “keeping the adviser in the loop”.

APIs

Integrating these services with existing back office systems is crucial, says Alistair Wilson, head of platform strategy at Embark Group.

His firm’s Advance platform links directly to investment platforms and other data sources using APIs (application programming interfaces) to provide clients with “seamless online access”.

APIs allow mobile or online apps to talk to each other, and form the core component of Open Banking – the movement within the retail banking sector to improve the efficiency and transparency of consumer services.

They power banking apps such as Monzo and Revolut to help users manage their money in real time.

Improving integration and secure data sharing is “an important development for our digital solutions and the industry more broadly”, says Mr Wilson.

However, APIs cannot solve all integration problems, according to InvestCloud’s Ms Shamberg.

Instead, she says that ensuring all information is stored in one secure location – via cloud computing technology – allows for data and processes to be “automated and seamlessly integrated into all functions and applications”.

Future developments

More innovations for adviser-focused technology are on the horizon. Credas is currently developing a “virtual compliance assistant” with “advanced analytics” capabilities to improve reporting and fraud awareness, according to Mr David.

Totemic Group’s software subsidiary Paylink is testing the use of an information gathering product for use in the lending sector, including mortgage advisers, according to chief executive, Philip Rann.

The service will allow clients to upload bank statements, credit reports and other relevant information into a database that is then used to populate income and expenditure documents.

It is also designed to connect with a range of other client management systems, “creating a huge time save”, Mr Rann says.

As lockdown and social distancing measures continue to reshape society, advisers will have to adapt and adopt new technologies and new ways of working. Fortunately, the options are plentiful.

Nick Reeve is a freelance journalist