Expert: Adam Jones, Strategic development director, SECCL Technology Ltd Facilitator: Rod Bryson, Tata Consultancy Services (TCS)
Headlines:
- The financial planning industry lags in digital innovation, with platforms struggling to match the personalisation seen in other industries like music streaming.
- Human connection remains the cornerstone of financial planning, but technology must enhance rather than replace this element.
- Data integration and goal-oriented client portals are critical for improving client experiences and financial outcomes.
- Consumer duty regulations and generational shifts in expectations are driving rapid technological changes.
- Preparing for disruptive innovations is essential to remain relevant in an evolving industry.
Discussion points:
Digital Innovation Lag
While industries like music streaming have embraced seamless user experiences and personalisation, financial services platforms have been slower to innovate. There is a need for platforms to focus on user-centric designs that enhance client engagement and satisfaction.
Value of Human Connection
Technology can enhance efficiencies, but the irreplaceable value lies in the human connection between financial planners and clients. Personalised advice remains a cornerstone of meaningful client relationships.
Challenges in Personalisation
Current client portals often fall short of addressing broader financial health and goal tracking. Platforms tend to focus narrowly on fund performance, overlooking the potential for more holistic, goal-oriented solutions.
Potential of Data Integration
Open banking offers opportunities for granular expenditure tracking, improved data consolidation, and better client outcomes. However, fragmented systems remain a challenge, requiring robust integration and effective use of data to scale services.
Technological Scalability
Advancements in integrated systems combining advice engines, cashflow tools, and custody services could enable financial planners to manage a significantly larger client base without sacrificing service quality.
Impact of Regulatory and Market Changes
Consumer duty regulations are driving demands for platforms to share more comprehensive data with advisory firms. Simultaneously, generational shifts are reshaping client expectations, emphasizing innovation and adaptability.
Strategic Technology Decisions
Firms face a pivotal choice between investing in proprietary technology for customisation or adopting third-party solutions for scalability and cost-efficiency. Both approaches require careful consideration of long-term goals and resource allocation.
Preparing for Disruption
Rapid technological advancements and evolving client demographics necessitate proactive strategies to embrace innovation and avoid obsolescence.
Key takeaways:
- Prioritise Goal-Oriented Design: Platforms should shift their focus from fund performance to client-centric features that track financial health and life goals
- Leverage Open Banking: Integrating open banking data can provide detailed insights into client expenditure, enabling more precise financial planning
- Scale with Technology: Firms should prepare for a future where advanced systems allow advisers to efficiently manage larger client bases while maintaining quality service
- Centralise Data Management: Developing in-house data solutions, such as data warehouses, can enhance control over client information and improve its utilisation
- Simplify Systems Post-Merger: Merged or acquired platforms must streamline and consolidate technologies to boost efficiency and client experience
- Adopt Flexible Technology Strategies: Balancing customisation with scalability is critical. Firms should evaluate whether proprietary or third-party solutions best align with their strategic goals
- Proactively Embrace Innovation: Staying ahead of technological trends and adapting to generational shifts are essential to remain competitive in a rapidly evolving market
