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Top tips to improve your tech offering

This article is part of
Guide to making Project Innovate work for you

Top tips to improve your tech offering

Fintech is not an immediate answer to closing the advice gap: it takes time to plan, prepare and implement technological changes to any firm, be it large or small.

According to Martin Bamford, chartered financial planner for Informed Choice, this is why the industry perhaps has not seen mass announcements about fintech innovations coming out of the Project Innovate process so far.

He says: "Developing new technology and using this to launch new businesses takes a long time. 

"Even in the fast-moving world of fintech, I would not expect to see immediate results from an initiative such as Project Innovate. It could take several more years before we start to see positive outcomes."

However, some results of financial technology have already been witnessed in the industry.

For example, research by EY revealed that, at the end of 2016, there were up to 70 players offering, or planning to offer an automated advice system.

As the technology advances, EY believes robo or automated advice will make significant strides across the financial advice arena. 

EY has predicted the robo or automated advice arena will grow to a US$2.2trn industry by 2020 - just three years away as consumers become comfortable with digital channels and advice and investment firms offer access to more affordable wealth management.

Indeed, EY predicts auto-advice fees could end up at 0.25 per cent to 0.5 per cent of assets, compared to 1 per cent to 2 per cent for a human adviser. 

Yet with all these changes and developments in the world of fintech, advisers will also need to get to grips with what is already available to them before they can take the next step on their technological journey.

Chris Hannant, director general of the Association of Professional Financial Advisers, comments: "One of the biggest challenges is how to effectively integrate the various technologies that are already available."

Social media

Before developing new technologies or committing capital to funding fintech, make sure you are making the most of the internet-based tools already available (for free) to your firm.

This is one of the points made by Abbie Knight, founder of A Business Innovation, who says as the majority of clients are now going online to do their research before buying a product or service, advisers will need to up their social media game if they are to succeed. 

She explains: "A third of those searching for a local service use a smart phone as the primary tool to seek advice. Eight out of 10 people searching online will take action based on what they find online."

In addition, make the most of the data your firm already has available to you to improve what you offer and how you offer it.

This is the view of Deloitte Consulting, which in its 16th Deloitte Review Issue, Cognitive Technologies: The Real Opportunities for Business, claims making the most of the data you have can add immense value to your firm.