After more than twenty years leading technology implementation across multiple sectors including financial services, and a few months now spent within financial advice, it is clear to me that IFAs are being let down by the quality and the connectivity of the tech ecosystem they operate in. Despite the existence of a range of tools, including CRMs, back-office systems, dashboards and compliance portals that support everyday workflows, the current pace of innovation is preventing IFAs from fully realising the potential of what technology can do for them and their clients.
To be clear, IFAs themselves are not to blame for this. In fact, we are seeing IFAs across our network making the most of emerging AI use cases, from summarising meeting notes to analysing investment portfolios. This is already having an impact on how IFAs deliver advice to clients, testament to their willingness to embrace technological transformation.
However, many IFAs today find themselves operating inside a bubble, unable to see the wider world of possibilities that exists beyond it.
There is both an urgent need and an exciting opportunity to rebuild the advice and compliance process from the ground up to be AI-native, rather than just a digitised version of what was possible with pen and paper. In other words, to put power in the hands of IFAs, giving them the freedom to drive their own strategy, being systems and process agnostic, leveraging all available in-house and third-party tools.
Start with taking back control of data
At present, IFAs are working with a data ecosystem that is fragmented and outdated, often resulting in unnecessary friction and delay. A new approach to data, one which ends IFAs’ reliance on third parties, will give them the freedom to access data on demand, and make a tangible improvement to client servicing.
Not only would this improve visibility for clients, who could track their portfolios more regularly, but also lead to a more constructive relationship with their IFA. To take one example, annual reviews are now under the microscope after the FCA revealed that it is moving towards ending the compulsion for an annual check-in. Open data can allow IFAs to create the ‘always-on’ dashboards that will ensure both parties can review the short-, medium- and long-term outlook whenever they wish. Having a live dataset like this will also reduce administration, and boost trust and communication between IFA and client.
No place like a modern proposition
Given the pace of innovation, IFAs are naturally embracing technology at different speeds, depending on their needs, their clients’ needs, and their personal preferences. This is to be expected. Whatever the pace of change, however, there is a common need for guidance and support in ensuring confidence and reassurance as we rebuild how advice and compliance can work using the latest technology available.
A modern IFA proposition should be at the cutting edge of these advances, and the support structures needed around them. At Rimbal, we are supporting firms as they navigate this transformation, offering reassurance and expert counsel through on demand support services, market-leading technology and networking opportunities with peers.
This support goes far beyond providing better software. It is about empowering IFAs to do their best work. The IFA – client relationship has aways been built on human connection and that will not change. We are clear that the barrier is not IFAs; it is the fragmented infrastructure and data that sit beneath advice business.
I am extremely excited about what we are building at Rimbal to solve that layer for our ValidPath proposition and the wider IFA community, because it will enable more advisers to be more efficient, and also more capable of supporting more clients to achieve better outcomes. What does ‘unplugging IFAs from the Matrix’ look like in practice? It is bridging the gap between optimal, personalised advice and every single client or potential client, which represents a tremendous opportunity to deliver meaningful, positive impact.
