How has the pandemic changed the way advisers use technology?

But the Covid-19 pandemic has transformed so many areas of life – not least the way that people now communicate with one another – that we can no longer be resistant.

The advice industry has begun using new types of technology, or modified the way it is using existing technology, to maintain service levels to clients.

Derrick Dunne, chief executive of Beaufort Financial, observes that, historically, the advice industry has been “paper, people and time-intensive”. 

“Thankfully this changed a great deal in the past 10 years, which has allowed us to cope with this sudden change in operating circumstances,” he notes.

Richard Ardron, marketing director of SimplyBiz Group, says that technology has had a big influence in the advisory market for some time and that firms have continued to adopt and embed solutions across all parts of their business to bring about efficiency and to service client needs.

“What I think you are now seeing in the current climate – one which has restricted travel and social contact – is technology becoming more advice-centric and plans being expedited as a direct result of the situation,” he suggests.

Viable alternative

Many adviser-client meetings take place in person, either at the advice company’s office or in the client’s home.

Mr Dunne calls the trusted face-to-face relationship a crucial part of the creativity and bonding process.

“Solutions, such as Skype, which we have integrated with Centra, offer the personal contact that we are all lacking at the moment, and the quality of the delivery, coupled with the options to record and bring in other documentation, make it a more than adequate replacement,” Mr Ardron explains.

There are now an array of video calling services that advisers can use to ensure that they keep in contact with clients.

Jamie Smith, a financial adviser at Foster Denovo, says that pre-pandemic it was not unusual to hold some client meetings using online video conferencing facilities, such as Zoom.

But now that all client meetings have moved online it is proving to be a more engaging communication tool.

He adds: “I am pleasantly surprised by how quickly clients, who would never have previously accepted a video conference meeting as a viable alternative to a face-to-face meeting, have embraced this.

“As seasoned users of this technology, we can onboard new clients by completing all necessary client documentation during the meeting online and ‘recording’ client signatures.”

Old technology, new tricks

Video conferencing is a technology that is new to many advisers and their clients. But more technologies, such as email and company websites, are being used slightly differently by advisers to keep their clients – existing and prospective – well informed.

Jay Rooney, a financial adviser at One and All Financial, says he has been sending more emails to clients containing hints and tips, including information about the assistance available to business owners

“It’s an old technology – it’s an email or a mail merge technology – but we’ve been using it a lot more.

"Typically, we would just send out one newsletter every month, whereas in the past month we’ve sent out 13 newsletters, dependent on the type of client you are,” he explains.

Mr Ardron acknowledges that most firms have a website.

“But now we are seeing sites really come into their own, offering that added layer of contact, support and reassurance,” he notes.

“At SimplyBiz, we have seen a huge spike in the number of sites we are building for firms, and even more who are asking to add free guidance and news features to ensure clients have a reliable and readily available access point to check the current state of play.”

Mr Ardron continues: “I don’t think firms are changing how they use tech here as a direct result of the pandemic but they are certainly seeing its value, and I think it’s fair to say that tech is now running hand-in-hand with advice, and doing what it was always designed to do.”

On the other hand, Mr Dunne believes Covid-19 is an enormous catalyst for change.

“Since the start of lockdown, advisers have been rapidly using technologies so that they can keep delivering uninterrupted services to clients.

“Moving clients to electronic communications and documenting advice using systems such as Docusign has made it possible for advisers to carry on – in fact, many have been telling us they’re able to deal with clients more efficiently as a result,” he explains.

Time to talk?

But not all advisers are embracing the trend for video conferencing.

Mr Rooney says some advisers might be conducting meetings with clients over the phone.

“It’s a decision they’re taking instead of asking the client,” he notes, adding that this could be a “trap” advisers fall into if they are not confident about using the new technology themselves.

“Advisers might be putting psychological barriers up in their own minds instead of saying to their client, ‘if I send you the Zoom link it’s really easy – I can show you [what] I would have shown you if I was sat next to you in a room’.”

As to whether advisers’ clients adapt so well to meetings conducted via video calls that, in the future, they request this over a face-to-face meeting remains to be seen.

For advisers, the advantages seem to be numerous.

Mr Dunne says: “People have quickly realised the time savings that video meetings facilitate, and many advisers have been telling us they are able to deal with far more clients now that they have moved to video meetings and are saving time on travel.”