Technology no draw card: survey
A recent survey by financial services software specialist Esprit Information Technology has found technology is not always a solution for many financial services industry players.
In a survey of 31 business groups, 30 per cent of survey respondents including life insurance, funds management firms and superannuation funds reported their current technology hindered their competitive advantage.
“There is always this view point that if fund managers and insurance providers have the latest technology, it will set them apart from the pack, and I don’t know that it is true,” Esprit Information Technology engagement manager, James Evangelidis says.
“Anyone can buy the technology. What’s important are the services they provide.”
The survey also revealed the three most important criteria drivers for technology was reliability, administrative efficiency and scalability.
The top three business drivers in financial services were product performance, customer retention and new business. The least important was distribution channels.
According to Evangelidis, this has a strong message for financial planners.
“The reason someone uses a financial planner is not because they have the best technology. They use them because they provide a complete service that is honest and transparent and compliant,” he says.
According to Esprit’s managing director John Groves, the general mood of the group surveyed was that businesses had reached a point where technology was not adding value.
Esprit’s clients include IAG (formerly NRMA Insurance), GE Capital,Citigroup Asset Management,Citicorp Insurance and Investment,BNP Paribasand TNT Australia. It has been in the market for 12 years, specialising in the development, delivery and support of information systems to the financial services industry.
Recommended for you
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.
Having sold Madison to Infocus earlier this year, Clime has now set up a new financial advice licensee with eight advisers.
With licensees such as Insignia looking to AI for advice efficiencies, they are being urged to write clear AI policies as soon as possible to prevent a “Wild West” of providers being used by their practices.
Iress has revealed the number of clients per adviser that top advice firms serve, as well as how many client meetings they conduct each week.
