Technology could help service C and D clients

Advisory technology of the kind used by super funds to provide limited advice could help advisers and dealer groups retain and profitably service C and D clients in a fee-for-service environment, according to Provisio Technologies.

Technological advances such as cloud computing make scale less of a factor in these cases, according to Provisio director Cameron O’Sullivan.

“Technology represents the biggest opportunity for the advice industry to dramatically lower the cost of advice per client,” he said. “By lowering the cost of providing advice you then have the ability to preserve or even enhance C and D client profitability.”

The technology could support the provision of online advice or a call centre, reducing the work required to prepare a Statement of Advice for those clients with simpler advice needs, regardless of fee-for-service requirements, he said.

The same technology could also help manage other requirements such as opt-in, O’Sullivan added.

Industry super funds are able to provide advice to huge numbers of members at a relatively low cost, and the retail advice industry could also benefit, he said.

Dealer groups and planners need not fear the industry fund push, he added.

“This is a valuable service to members who would usually miss out on advice altogether. The advice services implemented by the super funds reach the bulk of the population who have never seen a financial planner, and are unlikely to ever do so,” he said.

“In most cases this is providing the most basic advice, which would not impact the majority of financial planners.”