Financial planning boutiques move to outsource admin
Boutique financial planning practices can increase their efficiency and save money by moving their administration overseas, according to JC Consulting managing director Jason Cutrupi.
Ninety-five per cent of JC Consulting's administration work is carried out in Bangkok, Thailand, according to Cutrupi.
"The key reason why this has worked for me is because I've sent one of my staff members over there. She has a great understanding of the business, and has been with me for six or seven years," he said.
"She's over there teaching the Thai employees the back-office systems and generating new systems. When she eventually comes back we'll have everything in place if there are any changeovers in staff," Cutrupi said.
The primary goal of the outsourcing arrangement is to expand JC Consulting's administration base, and "the fact that I'm saving some dollars, that's a bonus", he said.
"I'm getting four admin staff for the price of one. All my operations in Thailand cost the same as having one admin staff full-time. I'm getting so much more efficiency," Cutrupi said.
With the low unemployment rate in Australia, small businesses are finding it tough to source staff who are willing to do remedial work on a long-term basis, he said.
And the "high touch" environment being fostered under the Future of Financial Advice reforms means planners have to be out there meeting high value clients rather than wasting time doing administration, Cutrupi added.
"We want to be able to have the back-office admin to be able to punch in all the data, and with our links to XPLAN that data can be drawn out and the [Statement of Advice] completed," he said.
In the longer term, Cutrupi plans to outsource his model to other small, independent financial planners.
"Once I've got the systems up and running I'll be able to tailor packages to other financial advisers who are in a similar situation to me. For a certain fee, we'll be able to offer you this back-office service," he said.
Recommended for you
Financial Services Minister, Stephen Jones, has assured the cost and time to enter the financial advice profession will soon be halved, as shadow treasurer Angus Taylor pledges to reach 30,000 advisers.
The positive results of the latest financial adviser exam have helped the advice profession reach 15,600 yet again, according to Wealth Data analysis.
Financial advice firms have told Adviser Ratings they are planning to increase their compliance spend by almost a third, including on enhancements to their cyber security which ASIC has identified as an enforcement priority.
The digital advice platform is officially launching into the financial advice sector, offering up its services to practices as a means of engaging with the next generation of clients.
