Greater automation of workflows could create a “techno-advisor” and increase advisor-client contact, according to a white paper by SEI Advisor Network, Oaks, PA., Financial Advisor writes.
How Automating Workflows Can Keep Advisors Abreast of Client Needs
Financial planning has become more client-focused, and advisors can now automate processes to deliver tailored solutions, according to John Anderson, SEI’s head of practice management, the publication writes. Investment recommendations and trades are no longer core, and advisors are expected to understand a client's personal situation, be easy to work with and not make mistakes, according to SEI, Financial Advisor writes.
However, only 41% of advisors surveyed by SEI think financial planning is their core value proposition, and 25% find explaining financial planning challenging, the publication writes. Furthermore, more than 25% reported that they struggle to find the right technology for their clients, according to Financial Advisor.
SEI recommends creating workflows, which don’t reduce personalization, but instead allow for customized plans and more time for client-advisor contact, the publication writes.
SEI and ActiFi studied 46 firms that were implementing workflows for more than two years, Financial Advisor writes. The study found that prior to automation 35% of clients received financial planning, compared to 58% after, the publication writes. Seventy percent of the firms reported a lack of time for client-related activities, which dropped to 41% after the implementation of automated workflows, according to Financial Advisor. Furthermore, 39% of advisors reported that clients and activities were remembered by individuals, down from 65% before automation, the publication writes.
Practices that automated also increased follow-ups with clients and the use of meeting agendas, and had clearer processes for prospecting and onboarding clients, according to Financial Advisor. Automation also helped firms reduce errors, the publication writes.
Only one-third of clients with less than $1 million in investable assets start planning with a human advisor, according to SEI, Financial Advisor writes. Most investors are used to opening accounts and starting the investment process from their own computers, the publication writes. Many advisors already use digital platforms and client portals, but few are managing to convert digital prospects to full planning clients, the publication writes.
