ColonialFirstState chief executive Brian Bissaker believes paraplanning is the “most important service for an advice business” and has been a key part of Commonwealth Financial Planning’s increase in productivity.
Bissaker made the remarks at the Wealth Management Update held at the Commonwealth Bank’s Sydney CBD offices today.
“The quicker you can get [the plan] turned around the best it is for the client,” Bissaker said.
“We have gone from an average of seven or eight days to one or two days,” he added.
Despite the global economic uncertainty, Bissaker pointed to Colonial’s strong market position, lowering cost to income ratio over the past five years and high adviser ratings as indicators that the business would continue to grow.
He added that in an economic downturn advisers will often seek alternative products such as insurance to recommend to their clients.
“Our view is that insurance is becoming a much more important part of the planning business,” he said.
Commonwealth group executive of wealth management Grahame Petersen said the group considered product and service innovation to be one of its strategic priorities.
Both Bissaker and Colonial First State Global Asset Management’s Warwick Negus said they would be actively seeking new products and acquisitions.
At the same time as the update, the Commonwealth Bank announced a strategic move into structured investments with the launch of a new range of products that target individual investors and self-managed super funds.
The two new products, options and lending, or Opals and Capital Series Multi Select, incorporate the recent changes made to investment legislation.
The announcement follows a substantial investment by the bank in developing innovative investment options through IT investment.
Bissaker this morning reiterated his belief that service improvements and cost efficiencies must come through improvements to IT capabilities.
