Your IndustryApr 27 2021

Hybrid planning can transform your business

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When I arrived at the dealership we went through the spec I had created using their 3D configurator online with a consultant using an iPad, clarified a few questions, made a few tweaks and the job was done.

I had done much of the thinking from the comfort of my sofa and researched the different options and pricing online. Very transparent – no pressure selling, which is good as I am not an expert – and I felt in control.

Last week I went to the dentist. I checked my health ‘fact find’ online before leaving and when I arrived at the practice the receptionist had all my information. The dentist had it while doing her check-up and so too did the hygienist in the room. The visit was smooth and efficient – and no fillings!

This week I had a GP check-up, the 15-minute appointment was over the phone and during the call she texted me a link to a video to watch based on our discussion to learn more about a particular topic.

The hybrid service experience – digital, over the phone and face-to-face by video or in person – has been catapulted into the mainstream as a result of social distancing and is making service delivery more accessible, more engaging and more efficient for consumers. Chatting to the dealer, the dentist and the GP, they liked it too.

The people they served were more informed, more engaged and they could serve more of them.

So how is the hybrid service experience likely to play out in financial planning and what are the opportunities and challenges? Hybrid servicing is clearly here already, at least in part.

More and more businesses are encouraging online fact-finding and risk-profiling and most are encouraging clients to use a portal to complete at least some of their 'know your client' process.

During lockdown remote client servicing has been widely adopted with video calls and growing amounts of screensharing. But this current use of technology is only in the foothills of what the future holds, I believe.

If you look at hybrid best practice in the UK and around the world now, it increasingly is built around the concept of an ‘always on’ financial plan.

The digital plan, based on the client’s risk profile and goals, is continuously updated with valuations and is enabling dramatic enhancements to company propositions, operating models and client relationships. In leading companies, advisers and clients co-create the plan and engage around it on screen via video or, when needed, in person.

The client may well have completed data collection on their own beforehand. Businesses are providing generic videos to clients to educate them on topics such as drawdown before meeting, and regular short, sharp video check-ins enable ‘what ifs’ and course corrections in pursuit of client objectives during the year.

It moves planning from a nice once-and-done add-on, to the centre of the relationship and an ‘always on’ value proposition. It is the reason for obtaining data from clients and the vehicle by which the company adds value and charges fees.

Because it is based on what is important to the client, it is fostering deeper relationships too.

Such an approach based on shorter, sharper multi-channel interactions makes the most of both client and adviser time and increases access to advice and business productivity.

Video interactions also enable companies to make better use of paraplanning and non-authorised expert team members in the office who can be involved not just in plan creation, but in discussing its non-regulated aspects with all the career opportunities this brings.

It is enabling businesses to become more productive and to scale if that is their strategy.

Hybrid challenges

When I talk to companies who are putting a hybrid planning experience in place they often talk about two key challenges to be overcome.

First is adviser behaviour. The use of planning technology with a client as opposed to the presentation of a pre-prepared report is without doubt a significant change in behaviour for most advisers.

In the same way that those of us who went to school before computers were commonplace used to write out reports long hand before typing them up, the use of technology with a client takes some getting used to.

It is not always appropriate for all stages of the process, truly understanding and empathising with a client’s situation for example, but when it comes to illustrating the client’s position and demonstrating different potential strategies it is incredibly powerful.

A picture is worth a thousand words, and a dynamic picture you can co-create and look at ‘what ifs’ with is worth even more. So, how do companies overcome this?

Training and preparation: building the plan beforehand, working through some 'what ifs' and getting comfortable with the data and the analysis before a client meeting, as you would with a written report, helps build confidence.

Some advisers are concerned that using technology with clients will make what they do look too simple or take away from the perception of their expertise.

However, feedback from planners who have embraced this mode of working demonstrates the opposite. The increased engagement gained from a client only adds to trust in the relationship.

The second challenge to overcome is trusting the data.

A plan is only as good as the data that goes into it, of course, and concern around its accuracy is often cited as an impediment. Ensuring valuations are up to date and your planning system is integrated with your practice management and/or platforms to get accurate valuations is a key first step to planning in the hybrid world.

More than this though, advisers want to be confident in the investment data and analytics they are using as well as the assumptions and calculations being used in the plan. Real-time use of a system with a client and opening up client access to the planning system requires investment data to be accurate and assumptions used objective, reasoned and reasonable.

There is no substitute here for due diligence on your systems to ensure your business is comfortable and confident, and again checking individual clients in small groups before releasing to a wider audience.

The hybrid world is with us now in all walks of life, including professional services. It offers huge opportunities in terms of opening up access to advice for clients and productivity and engagement for companies. The challenges are well worth the work to overcome them.

Ben Goss is chief executive of Dynamic Planner