In this blog, we discuss the merits of hybrid advice and how it could increase your client numbers and adviser revenues by over 200%.
Until recently, conversations around 'automated advice' tended to centre on dystopian views of the future in which robots have forced humans out of their jobs. When in fact, this couldn’t be further from the truth for those in financial advice. Why?
Firstly, it’s helpful to distinguish between automated and digital or 'robo-advice'.
Automated advice is led by a set of algorithms, based on a firm’s advice policy, that can accurately direct the best advice route for an individual client’s needs.
Digital advice enables streamlined, simplified advice for areas like pension top-ups and ISA investing. It’s a highly cost-effective way of onboarding new clients, performing initial fact-finding, and encouraging people to improve their overall financial situation, particularly for retirement planning.
Far from replacing humans, a ‘hybrid’ advice model - a combination of automated, digital and human advice - enables financial advisers to service more clients, offer more consistent advice and increase revenues.
Here are five ways that hybrid advice can increase your client count and revenues.
Repetitive administrative processes are perfectly suited for digital and automated advice. Automation can significantly increase productivity.
Take a recent customer, for example. The wealth advice business timed their average at-retirement process to take approx. 35 hours per case - from receiving the initial lead through to business submission.
Meanwhile, Fact Finds were taking on average 280 minutes and case writing was consuming around 580 minutes, so there was a clear need to reduce the time spent on these key, but time-consuming areas of the process.
To take some of the ‘heavy lifting’ out of the process, we implemented a series of automated functions via Turo, our automated advice platform which included:
· Automated reviewing and validation of data
· Automated fund analysis
· Integration with relevant systems to retrieve data, quotes and graphs
· Automating production of the suitability report to the adviser
Traditionally professional financial advice has been delivered face-to-face, but the acceleration of ‘digital life’ during the pandemic has provided a welcome catalyst for digital and automation.
Advice firms can take advantage of this encouraging statistic by ‘digitally onboarding’ new clients.
Digitally onboarding takes the client through an automated financial ‘health check’ to understand their financial commitments and retirement income goals via an interactive chatbot.
The client is then presented with a series of recommendations to help them achieve these goals.
The platform also identifies how much the client needs to save into their pension each month to achieve their desired retirement income and lifestyle.
If they don’t already have a pension, a chat bot provides guidance on pension types and can refer the client to a human adviser for fully regulated advice, if required.
Having a holistic hybrid advice platform in place can significantly increase client retention.
Once a client has been successfully digitally onboarded, they’re likely to feel inclined to continue with digital and automated advice at other key intervals, such as annual reviews, consolidation, or changes in circumstance.
Automation simplifies and speeds up the process where a client has complex circumstances or higher wealth levels.
So key advice processes can be accurately streamlined with a hybrid approach, and because every action is recorded by the platform, there’s no need for re-keying data and the compliance trail is exact and readily accessible.
Procuring new technology in the advice sector has traditionally been regarded as costly and complex. This is changing.
Advancements in technology driven by APIs have allowed for digital and automated platforms which are modular. In simple terms, this means wealth firms can pick and choose the modules that work best for them at any given time - anywhere in their processes.
Onboarding new technology has also become far simpler. Wealth advisory firms can have their own in-house technical teams integrate the modules into their own ecosystem or use a vendor’s implementation experts.
This ‘plug and play’ approach ensures the technology is adaptable to every business’ advice needs and sits with its advice permissions at any given point.
Automation can help a business scale and therefore increase revenues. Take a recent customer - a top-tier financial institution, that wanted to track the productivity of one of its advisers using automation for the ‘at-retirement’ process.
We recently worked with one of our top-tier clients to track the productivity of one of its advisers using Turo for the ‘at-retirement’ process.
Over the course of Quarters 1 and 2 in 2021, we recorded the following results:
The results were highly encouraging with key highlights including a 225% increase in projected completed cases and total revenues projected per adviser.
We also uncovered some equally encouraging results when it came to adviser productivity.
Using automation, the proposed hours spent per case was reduced from 35 to 11 – a saving of 24 hours per case. Based on average adviser salaries, 260 working days per year and 7.7 hours per day, the savings per case are projected at £800.
Hybrid advice is increasingly popular and as both technology and attitudes towards automation mature, we’re going to see a significant increase in productivity in the coming years.
The hybrid advice process is gaining significant momentum as advice firms seek to manage existing clients needs more efficiently, and on-board new clients cost effectively, enabling them to access guidance and advice in a way that works for them, and for you.
We would love to talk to you about how we can help make your firm's ambitions a reality using our industry leading technology, so please contact email@example.com for further insight.
If you would like to find out more about Turo, fill in the form and one of the team will be in contact with you.
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