Expert: Caroline Deutsch, Head of UK/EMEA Marketing, SEI Facilitator: Helen Clark, Mint Blue Consulting
Headlines:
- Less than 50% of advisers' time is spent on client-facing activities, and this figure drops to 37% for commission-based firms
- The challenges of measuring productivity accurately, with only 10% of firms having specific productivity measures in place
- The various factors impacting productivity, such as technology adoption, outsourcing operations, consolidation and M&A activities, and the role of company culture and leadership in driving change
Discussion points:
Research findings on productivity in wealth management firms
Analysis of research findings indicate that most wealth management and financial adviser firms are aware of their low productivity levels.
The average self-rated productivity score was 6 out of 10, and this dropped even lower to 5 out of 10 for front office activities.
The research also revealed that less than 50% of advisers' time is spent on client-facing activities, and this figure drops to 37% for commission-based firms.
Challenges in measuring productivity
The challenges of accurately measuring productivity, with less than 10% of firms having specific productivity measures in place.
The lack of consistent metrics and data-driven decision-making processes is highlighted as a significant obstacle to improving productivity.
Experiences were shared on implementing dashboards and data tracking systems, which emphasized the importance of gaining trust in the data and fostering a culture of data-driven decision-making.
Factors impacting productivity
Experiences with implementing new technologies, outsourcing back-office operations, and navigating the challenges of mergers and acquisitions. T
he importance of change management and fostering a culture that embraces productivity improvements was also emphasized.
Impact of consumer duty regulations
The potential impact of the upcoming Consumer Duty regulations on productivity. It was suggested that the regulations might drive different behaviours and service models, potentially improving productivity by encouraging firms to streamline processes and focus on delivering value to clients. However, others expressed concerns about the potential administrative burden and the need for firms to adapt their practices to comply with the regulations.
Generational shift and work-life balance
The generational shift in work-life balance expectations and the need for firms to adapt to attract and retain talent.
Observations were shared on the changing attitudes towards work, with younger generations valuing flexibility and work-life balance more than previous generations as well as strategies for promoting a healthy work-life balance while maintaining productivity levels.
Case studies and examples
Case studies and examples from the respective firms were shared, highlighting both successful and challenging approaches to improving productivity. These case studies covered a range of topics, including the use of technology, outsourcing, process optimization, and cultural change initiatives.
Key takeaways:
- Conduct an industry-wide data analysis on asset transfer times to identify bottlenecks and areas for improvement
- Explore the potential of AI and automation technologies, such as transcription services and vulnerability detection, to enhance productivity and client service
- Establish a forum or working group to facilitate collaboration and knowledge sharing among firms on improving processes like asset transfers
- Review and refine productivity metrics and performance measures to align with the firm's specific business model and client needs
- Develop strategies to foster a culture of data-driven decision-making and gain trust in data-driven insights across the organization
- Evaluate the impact of the Consumer Duty regulations on existing processes and identify areas for process optimization and streamlining
- Assess the firm's value proposition and service model to ensure alignment with evolving client expectations and work-life balance considerations
- Explore opportunities for outsourcing non-core activities and leveraging technology to automate repetitive tasks and improve operational efficiency
