Software yet to support 'true' advice process
Advice software is yet to support the “true” advice process and is too focused on product sales and compliance, according to Lumiant.
Peter Panigiris, executive at Lumiant, said advisers would find it difficult to conduct activities that better connect with clients using the current software that was in the market.
“This is a strong statement, but software hasn’t really supported the ‘true’ advice process, it’s really supported product sales and compliance,” Panigiris said.
“Don’t get me wrong, we understand there are regulations advisers need to adhere too and requirements they need to do.
“But from a client’s point of view, it’s the least important part of the process – product sales are probably the least important part.
Santiago Burridge, Lumiant chief executive, said he had not heard anyone talk highly of their software providers.
“I say that with some level of confidence,” Burridge said.
“We need to shift that away from pen, paper and people – it has to be measurable, memorable and repeatable, and not dependent on my skill as an adviser to deliver it.
“In my early learnings in trying to understand what best practice in advice looked like, it was that great advice businesses are customer obsessed – they think about clients for life.
“The technology delivers on that promise and the job of the advisers is to spend time with their clients, that’s it.”
Burridge said the other part that “slapped me around the face” was the realisation the whole industry had been built to engage the wrong person.
“We built it to engage someone we defined as the ‘CFO [chief financial officer] spouse’ – which has typically been the male, fortunately that’s changing,” Burridge said.
AUTHOR
Chris Dastoor
Recommended for you
Sequoia Financial Group has declined by five financial advisers in the past week, four of whom have opened up a new AFSL, according to Wealth Data.
Insignia Financial chief executive Scott Hartley has detailed whether the firm will be selecting an exclusive bidder for the second phase of due diligence as it awaits revised bids from three private equity players.
Insignia Financial has reported a statutory net loss after tax of $17 million in its first half results, although the firm has noted cost optimisation means this is an improvement from a $50 million loss last year.
With alternative funds being described as “impossible” for fund managers to target towards advisers without the support of BDMs for education, Money Management explores the evolving nature of the distribution role.
