Australian advisers lag in technology use
Financial planners in Australia are using less sophisticated software and technologies than their US and UK counterparts and have focused their spending on compliance instead of business efficiency in the lead up to the introduction of the Future of Financial Advice (FOFA) reforms.
FinaMetrica co-founder Paul Resnik said the focus on compliance relating to FOFA had led to financial advisers not investing in new systems to improve their businesses despite software and technology spending having a large impact on the ability of a financial planning practice to service customers and generate a profit.
He said financial planners in Australia should examine software and technology spending as cost-saving solutions for their businesses and their client and expects that as planners focus less on FOFA implementation they will begin to adopt "more sophisticated software aimed at achieving greater efficiencies and delivering greater transparency to their clients in the advice process".
According to Resnik the downturn in planner spending on software and technology comes as Australian businesses in general invested record levels of money in software in the second quarter of this year. The Australian Bureau of Statistics has reported a record $3.26 billion in software spending, up 2.4 per cent from the previous quarter and 8.3 per cent from the previous year.
FinaMetrica produces risk profiling software tools based on a psychometric test of personal financial risk tolerance and are by 5500 planners used in 23 countries.
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