According to popular urban legend, the ideas for Uber and Quidditch were thought of over beers.
Money Alive can also add its name to that list.
Andy Kirby, who is a co-founder and chief executive of Money Alive, says: “I just thought that with the limited supply of advice in the marketplace, how can you reach more people so they get access to good quality information to make better decisions?”
Money Alive is a video engagement platform that advisers license and subscribe to, which enables them to invite clients to watch box sets on different financial topics, such as understanding long-term care, drawdown reviews, defined benefit pension transfers and power of attorney.
Alongside Mr Kirby, the company was founded by three of its directors: Ian Beestin, who is marketing director; Mark Thewlis, a pension transfer specialist; and John Glover, who is business development director.
The original idea was for a direct-to-consumer proposition, but Mr Kirby says that shifted pretty quickly after speaking with advisers, who said the videos would help them to have conversations with clients.
Mr Kirby says: “The core ethos still stands: to help more consumers understand the decision they are making, but we are sitting in the middle helping the adviser on that educational journey, not just by using technology, but also by providing unbiased, consistent information, while bringing efficiencies into adviser businesses.”
Reaching a level of understanding
Once the adviser has issued an invitation to a client, they are then able to access the box set, which usually comprises a series of videos.
At the end of each video, the client is asked a number of questions, such as whether they understood it — answers which are then shared directly with their adviser.
“So the adviser builds up a picture of their client’s engagement and the level of understanding they may have.”
As a qualified financial adviser, Mr Kirby says he had first-hand experience of spending a lot of time repeatedly trying to explain complicated information to clients.
Mr Kirby explains that the engagement records are beneficial for the adviser in saving time and with risk management, because the adviser has a record of the client’s understanding, which could help if the client ever made a complaint in the future.
“From an adviser perspective, it is using technology to deliver something in an efficient way,” Mr Kirby adds.
“We also found that once clients have gone through the video journey, advisers say they have a much more engaged client, because their understanding is coming from a stronger position rather than a blank piece of paper.
“So they are having better conversations earlier on, which helps the process.”
Professional input
To develop the content and to ensure it is detailed and accurate, and help advisers manage risk, Mr Kirby says the team enlists input from various regulatory and professional bodies, such as the Pensions Management Institute.
For example, on DB transfers, Money Alive says using its video platform will help advisers meet principles one and eight of the industry-recognised PFS Gold Standard Transfer Process.
Other experts involved include professional indemnity brokers, financial services litigation lawyers and behavioural finance experts.
Content creation
Coming up with the content has not been difficult as there are a plethora of complex topics advisers are dealing with.
Money Alive was launched in January 2018 and, understandably, its first video was on DB transfers, a complex area of the market that has filled the trade news pages.
Mr Kirby says: “Some of the content is driven by a regulatory framework, others come from adviser feedback.
“For example, earlier in the year, we launched a box set around understanding long-term care. That came from adviser feedback saying they spent a lot of time with clients explaining the options available.”
Money Alive also surveys the clients directly to find out what they thought of the video.
According to Mr Kirby, 94-95 per cent of viewers felt better informed ahead of their adviser meetings, while he believes efficiency savings far outweigh the cost for an adviser to sign up.
Mr Kirby says: “The number one feedback from advisers is that it saves time, so they can make a judgment about what it costs for a subscription versus the amount of time they would save.
“It takes one minute to send an invite for a box set. It might take two hours [for a client] to get the same information, plus, there is the risk of saying something that could be seen as advice.”
Remote benefits
Amid the current crisis, where many people continue to work from home, Mr Kirby says the advisers have found the videos beneficial, as it has enabled them to reach clients in a different way.
“Coronavirus has probably accelerated the change that was ultimately going to be inevitable.
“And because we don’t know how long this is going to go on for, what we will see at the end of this, is that adviser firms will reassess how they work with clients and the technology they use.”
As Money Alive expands, Mr Kirby says the scaleable nature of the technology means it has also seen interest from employee benefits consultants, product providers and pension schemes.
Ima Jackson-Obot is deputy features editor of Financial Adviser and FTAdviser
