Firing lineOct 8 2020

'Small providers have been quicker to adapt to Covid-19'

twitter-iconfacebook-iconlinkedin-iconmail-iconprint-icon
Search supported by
'Small providers have been quicker to adapt to Covid-19'

Last year the biggest challenge that Mazars Financial Planning faced was integrating its acquisition of RCL Consultancy – a business it bought from Embark in 2017.

This year has been decidedly different, as it had to respond quickly after coronavirus hit the UK back in March.

We learned very quickly we could operate in a remote way

Ian Pickford, office managing partner and head of UK wealth planning and financial advice, says: “While we were a business that championed agile working, the past 12 months has seen the whole business embrace this fully with Covid-19 being the catalyst. 

“We learned very quickly we could operate in a remote way and, while some of the normal activities have been curtailed, it is commonly felt our teams are collaborating more now than they did when they were in the office.”

Tech troubles?

One of the most surprising things that Mr Pickford has experienced during the crisis is the manner in which some providers have managed the crisis.

“Providers have also had to adapt [but] the digitisation of our interaction has been dealt with better by some than others,” he says.

“What has surprised me most has been the adaptability of some of the smaller providers who have been quick to adopt new processes; as opposed to some of the larger providers where you still can’t speak to a member of staff because they are ‘working from home’ and still require ‘wet ink’ signatures.”

With modern technology, he adds that still requiring wet ink signatures should “not be an issue” and those who purport to be at the forefront of the sector appear to be the slowest to change.

At Mazars the company has also had to accelerate its own tech capabilities as a result of the coronavirus crisis.

Mr Pickford says: “We were in the process of transforming our business and Covid-19 acted as a catalyst to accelerate these changes to the extent we are now ahead of schedule. 

“It forced us to look at digitising many parts of our business and we actioned these changes.”

He adds: “We have [created] new ways to develop business, new skills in presenting to new and existing clients and used the situation to accelerate changes in our business for the benefit of clients and business efficiency.

“Equally, while we are collaborating more, people development and training practices have had to be revised. However, I am really proud of the way the business has reacted so positively and cooperatively to the changes, many of which are here to stay.”

When speaking on the changes made by the company, Mr Pickford says: “These changes have been greeted positively by both staff and new and existing clients as they have made life easier. 

“We still believe there is more to do and, as a result, the way we do business is going to change for the better.”

Evolving industry

Having worked as an independent financial adviser since 1990 – working solely in accountancy practices – Mr Pickford has seen close up how the financial advice sector has evolved.

He has been with the company for more than 20 years advising high-net-worth individuals and business owners on building and managing their wealth, investments, pensions and retirement counselling. 

In particular, he works with owners of companies who are preparing their businesses for sale and planning their life post-sale.

“The landscape for giving advice is changing and there will be some sections, businesses and individuals within the advice sector who will have found this period hard from an operational, business development and client relationship perspective,” says Mr Pickford.

“Many of these changes are here to stay, thus they will be analysing whether they will be best placed to continue in their current form and will be considering the options that may be open to them.”

Bright future

Despite the challenges Mr Pickford is optimistic about the future of financial advice, as people will always need advice and, in the short term, need it more than ever in what will be challenging times to come.

What businesses should do now, he says, is to seek out the opportunities that can help the way the business develops and the way advice is delivered and administered.

“Not only will there be changes but also because of the situation, the speed of change has increased,” Mr Pickford says.

“This is a good thing as adoption and integration can take time. However, the [Covid-19] situation has forced change and therefore the speed at which the benefits are realised comes much earlier.”

He adds: “It will create new opportunities; businesses will require different and new skill sets in their teams and some roles will go on to be replaced by others. However, the place of the adviser will remain but the management, storage and use of data will change.”

This is because the changes will highlight the fact that there will be real value in advice rather than implementation, which will become more automated. 

Mr Pickford hails this as a “real positive”, adding that it is the differentiator between those businesses that can give advice compared to those who still act mainly as facilitators, and is from where they derive their remuneration.

The company, which came fifth in last year’s Top 100 Financial Advisers ranking, has a  five-year plan to increase its turnover to £30m, and to grow its funds under management to £3bn.

Mr Pickford says the future is bright for those businesses who put providing advice to clients at the centre and transform their operations to take advantage of and optimise the technology that is available now and in the future.

Ima Jackson-Obot is deputy features editor of FTAdviser and Financial Adviser