Next.direct Conference – Industry seeks to harness web
Awareness of the Internet is now widespread throughout the financial services industry as is the volume of information which comes with the new medium.
The new challenge is how to harness and use this in your business, according to Putnam Investments marketing communications senior vice president Mark McKenna.
Speaking at the Next.Direct conference McKenna says the biggest impact of this new focus is the change in workflow for many firms.
McKenna says planners can customise the way they do business dependent on client needs and also better define their relationship with the fund manager, creating a more efficient business.
"One example of this change is performance reporting can become paperless, which is a huge productivity gain but compliance issues have restricted the roll out of these methods," McKenna says.
However McKenna does not see the Internet eating into financial planner territory but rather that the information overload will send more people searching for the best advice that is catered to their own needs.
"70 per cent of funds sold in the USA are sold by financial advisers and that is set to rise. Through our consumer website some of the most sought information is in trying to locate a financial planner as consumers have used investment tools on the Internet which have raised further issues which need face to face advice," Mc Kenna says.
"Personalised black box solutions online are still a contradiction and they don't work as information is still too generic and there is no consideration of issues such as personalised risk and return criteria."
Yet planners shouldn't shirk away from the Internet because it also provides support and information previously unheard of.
"Many planners originally questioned the need to be online but with the addition of tools the Internet is now a fabulous communication tool which can be used to communicate with investors, fund managers and other industry professionals," McKenna says.
"It is now about adding value as the Internet moves away from being a transaction vehicle. This is important but the value needs to be in the high end.
"Planners want to look good to their clients by supplying relevant data and information and moving beyond the menial task and issues to make decisions sooner."
AUTHOR
Jason Spits
Recommended for you
Far too few wealth managers are capitalising on the opportunity presented by disruptive technology to deliver personalised investment solutions to the mass affluent demographic, according to PwC.
With over half of advisers using managed accounts, HUB24’s head of managed portfolios has unpacked the benefits driving their usage and how they can be leveraged by advice practices.
The FSCP has announced its latest verdict, suspending an adviser’s registration for failing to comply with his obligations when providing advice to three clients.
ASX-listed platforms HUB24, Netwealth, and Praemium have used their AGMs to detail how they are using artificial intelligence to improve their processes and the innovative opportunities it presents.
