Tech advances undermined if operational fundamentals aren’t in place

Operational fundamentals have to be in place if the industry is to take advantage of the benefits of the advanced technology available now, and coming down the line, says Origo CEO Anthony Rafferty.

Rafferty says: “Advances in adviser technology, including artificial intelligence (AI)-empowered systems and processes, are set to deliver potentially huge efficiencies and cost savings for financial advice firms. But if the fundamental processes feeding into this new tech are not keeping pace with the market, what the firm and ultimately the client receives, will be dictated by the slowest or least efficient part of the process. 

“Outdated processes are restricting advice firms in what they can achieve, and their ability to truly benefit from the operational efficiencies which adviser tech solutions now make possible. Digital/automated processing should now be in place across the industry for all processes affecting service to the end consumer. 

“Financial advisers and their teams have been expressing their frustrations for some time about how provider back-office processing is slowing down their operations. The lang cat has produced a number of reports on how the lack of integration for essential processes, and a reliance on manual processing, are not only hindering advice firm operations and costing them money, but importantly, hampering firms in their ability to service to their clients.

“As we see advice firms up their technology game, bringing in new digital and AI-driven systems, and taking advantage of the benefits they offer, so I anticipate we will see advisers become even more vocal about processes that cost them money and restrict their service to clients. 

“It would not be a surprise to see advisers seriously consider which providers to use, based on how their processing capabilities affect the adviser’s ability to provide the best service and outcome for their client. The FCA is likely to be interested in the outcomes as well. 

“Fortunately, a growing number of providers are seeing the light. There’s a realisation amongst industry CEOs that I’ve been talking to, that they have to bring their back-office operations into the 21st century, and a desire to make that happen. Which makes me confident that we will see some significant change over the next year or two, benefitting not only individual businesses, but the wider financial services industry and consumers too.”