Data protectionJul 5 2018

Advisers reveal what is preventing greater automation

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Advisers reveal what is preventing greater automation

Lack of systems integration is holding back advisers from using automation and digital solutions, research has revealed.

Findings published in a joint Origo and Platforum white paper revealed that 17 per cent of advisers, who are looking to increase their use of technology, have said the greatest obstacle is the lack of integration between back office systems, platforms and digital tools.

The data also found other reasons included provider processes, which was an obstacle for 13 per cent, while staff training was an issue for 11 per cent and security issues was a concern for 10 per cent.

Anthony Rafferty, managing director of Origo, said: “There is an increasing need within the advisory market to automate processes and use digital solutions, to help create greater efficiencies, deliver an improved service to clients, and to meet clients’ digital expectations across the board.

“Systems integrations serve our industry by reducing costs and delivering data quickly and securely. Hence, rather than just being a 'nice to have', they have become the expected norm for the adviser.

“The current major technological upgrades, or re-platforming exercises, occurring as platforms look to keep pace with technological change – combined with increased sensitivity around client data as a result of Mifid II and General Data Protection Regulation (GDPR) – also have thrown systems integration into the spotlight, as advisers attempt to keep their clients’ information up-to-date amidst the upheaval.”

The poll also found that while many platforms are responding to adviser demand for more integration, currently they are focussed on two core groups -  back-office systems and digital tool suppliers for risk profiling, fund research, and cashflow modelling.

Alex Reynolds, an adviser with Advies Private Clients, said: “I completely agree that the lack of integration and portability of data is an issue for many adviser firms.

"Given technology is constantly evolving, it is important to have the choice to use who you like but this is not always an easy option as most back office systems do not make this easy and means advisers end up sticking with one provider or using more than one provider for different aspects of the business.”

Martin Bamford, chartered financial planner for Surrey-based Informed Choice, also agreed and said: “The lack of integration between systems and providers has certainly held back progress in this area.

"It would lead to some incredible efficiency and cost savings if our back office could ‘talk’ to providers, sharing detailed information both ways. Valuation data is widely available now, although not always accurate. What’s needed next is a concerted effort to make consistent data standards for policy applications, performance figures and taxation reporting. Until the various providers get their heads together and agree on a consistent approach to technology and data standards, I’m not holding my breath.”

aamina.zafar@ft.com