How advisers can increase competitiveness through technology

Connecting your back-office system to your platforms, client portal, cash flow modelling tools and more will allow your client data to be populated automatically, making for easier and quicker reporting and a better, more engaging experience for the client as well as the adviser.

This allows you to focus on adding value to the client relationship and supports your business in delivering a high-quality service to a greater number of people while keeping a lid on costs.

When two or more parts of the chain are owned by one company, integration will be more straightforward.

However, although parts of the industry are making progress towards more open architecture and deeper, more effective integrations between the different systems in the adviser toolkit, we are some way off perfect.

With multiple providers involved, getting different tools to work together seamlessly is often a challenge.

The Lang Cat paper found that advisers typically re-key data into three standalone systems when onboarding new clients and estimated that a typical firm could be twice as efficient (as measured by the amount of AUA each administrator could look after) if systems were properly integrated.

These figures have hopefully improved since 2019, especially with the increased dependence on technology as a consequence of the pandemic.

However, we all know there are still too many IFAs re-keying data into multiple systems, reducing efficiency and productivity and adding cost and risk. 

Creating the best technology stack

A simple answer to creating an efficient back-office process is to use a single end-to-end provider rather than multiple partnerships.

When two or more parts of the chain are owned by one company, integration will be more straightforward.

A one-stop-shop can also offer greater convenience, efficiency and cost savings. 

However, it is understandable that many advisers prefer to select a combination of different software to best fit their business model, proposition and clients.

This often means creating integrations between multiple systems from different suppliers. 

With modern technology, linking software from various providers is absolutely possible.

Application programming interfaces (APIs) have revolutionised how we integrate technology.

The pandemic brought home the true inefficiencies of working from systems that are not joined up.

An API is a set of defined rules that allows different systems to speak to one another. It works as an intermediary, passing messages between systems that cannot communicate directly, to provide a way for them to connect and transfer data securely.

They have been a game-changer in making wider and richer connections possible by allowing different systems to talk to each other without the need for bespoke code and individual connections, cutting time, resource and cost from the integration process. 

The growth of APIs has made the integration process far less complex.