Planners too relaxed about online security
Financial planners have become too relaxed about where client data is stored and are opting for ease over security.
IRESS senior business development executive Michael Kinens said that planners have shifted from being concerned about data security to becoming blasé and storing client data insecurely online.
"Ten years ago planners were asking where their data was being stored by software and technology providers, while they used untested backup drives," Kinens said.
"This is no longer a concern as they appear to be saving client information anywhere in the cloud because of convenience but are ignoring the questions around security."
He said planners were being drawn to the ‘shiny buttons' and ease and convenience of cloud storage instead of taking the time and effort to use secure information storage systems which are available to them.
"This type of storage is like putting up a tent to live in, which is a quick but short-term measure, instead of spending the time with an architect to build something that actually meets your needs," Kinens said.
According to Kinens, the take-up of mobile planning tools and applications by financial advisers was good and had been driven by the need to take information to clients — and by clients wanting direct access to the information held by their adviser.
However he expects that the new year will see an increase in planners changing software providers, with many using the December-to-January period to review their systems.
"Typically clients are on holidays and planners are working on their own businesses, and as a result we see a spike in interest in the new year."
AUTHOR
Jason Spits
Recommended for you
Integrated wealth and financial services group Rethink has launched a financial planning arm called Rethink Wealth to expand beyond property investing and into holistic wealth management.
Iress has appointed a chief AI officer to spearhead the fintech’s strategic focus on AI, with chief executive Marcus Price describing how the technology opens the doors to a “new frontier for wealth advice”.
A quarter of advisers who commenced on the FAR within the last two years have already switched licensees or practices, adding validity to practice owners’ professional year (PY) concerns.
The shift in scale and consolidation has led to substantial growth in large privately owned licensees, which have tipped past 20 per cent of advisers for the first time to make up 28.3 per cent of the industry.
