Advice companies need to be creating and using client portals - not just for the client but as a "strategic enabler" of the business.
This was one of the key takeaways of a panel session at the Empowering Advice Through Technology conference today (January 18) in London.
During the session, which was chaired by Ian McKenna, founder of F&TRC, Jon Dear, head of advisory operations at Hargreaves Lansdown, said: "Quite often what intermediaries do is put someone else's brand in front of the client.
"What a portal enables you to do as an adviser is to put your own brand front and centre, and to remind the client of the importance of what you do."
He also said customers of all ages are used to dealing with portals, not just in online banking but everywhere - "my dog's vet, the dog groomers - it's commonplace", so advisers should not think this is just something for next generation technological developments.
These are absolutely flags. A portal is not a client tool.Jon Dear, HL"It's 'Now generation'. 'Today's generation'. It is inconceivable that you can run a professional financial planning business without this kind of functionality."
McKenna agreed, saying: "If you want to be supporting your clients at a time they are looking at their own finances, you have two options - either work til 9pm every night and Saturday mornings, or you need a digital mechanism like a portal, where you can provide clients with the ability to get access to everything, whenever they want to.
"Because if you don't there is a world-wide web literally full of this information."
Primacy and points of engagement
Jeff Lange, chief executive of TFAS Wealth, said: "From a connectivity perspective, relationships with clients are around primacy.
"What does the client portal represent? That primacy and that market lens of connectivity and relationship with the consumer.
"In a digital world every adviser should be aiming to be the primary source of information to their clients, because if you're not are they actual clients, or just a customer that uses you for some things?"
He also said: "Every client should have a financial plan on their phone and everyone should have a portal. If your IFA can't give you that basic tech, the sort of tech they are becoming used to, they may think twice about being your client."
According to the panel, a portal also enables the adviser to see how much the client is engaging, and when, with their financial plan.
They asked delegates if clients are taking ownership, using the technology to help create their plan, commit to it, and be part of the build? Or are they disengaged?
Also, are clients checking it every day or not at all?
"All these things can be indicators that the adviser should be picking up the phone and speaking to the client", said Lange.
Dear added: "These are absolutely flags. A portal is not a client tool. Yes it gives benefits that we can deploy to the client, but it is a strategic enabler as it forces the advice firm to get the data right, the service right and to help the business."
simoney.kyriakou@ft.com
