Catching referrals in the net

Referrals are one of the most important sources of business for advisers. But until now, management of them was on an individual basis that in most cases was a manual process.

Queensland-based Investment Data Technologies (IDT) has launched a web-based referral system called Referral Systems Online.

Managing director Danny Rodgers says IDT identified a niche in the financial services software market with the introduction of FSR.

“Advisers now have to give advice on all areas and a lot of people are networking their clients around to achieve this,” he says.

“Advisers that handle investment pass on referrals to people who do risk if they don’t cover this area.”

The new referral software enables advisers to track referrals in their system, note where the client has been passed and chase up outcomes from the referral.

Rodgers says it is designed for referrals that are dealt with in-house or passed to an external source, such as an accountant or general insurance broker.

“The software allows the advisers, and the dealer group, to follow where the referral goes, which creates a full transparent tracking system for referrals,” he says.

IDT has already sold the software to two life companies and eight dealer groups.

Rodgers says the life companies have linked the software to their call centres to enable them to follow leads and see what actions were taken. The software can also be linked to all existing financial planning software in the marketplace.

Referral Systems Online will also alert the adviser or dealer group when a lead hasn’t been contacted within 48 hours.

The software also fits into the compliance regime because there is an audit trail for the referral, actions and outcomes, he says.

“The audit trail means there is never any doubt about the referral, what was said and the actions taken,” Rodgers says.

“The software is very automated, so the details, progress and results are listed on a secure area of the adviser’s web site.”

By tracking referrals of business to external sources, the adviser can generate a renewable income stream with external brokers.

Rodgers says the software caters for any type of referral and streamlines the process, which simplifies the income distribution.

“An average adviser would have a couple of hundred clients who all have general insurance needs,” he says.

“This can be passed to a general insurance broker — which will generate an income for the adviser while they retain their client — as brokers are moving into areas such as superannuation.”

IDT is claiming its referral software is an Australian first and Rodgers is not concerned about competing software.

“The software was written by Errol Pinto and he brought it to us about 12 months ago,” he says.

Rodgers says a competitor will need at least 12 months to bring out a similar product.