Tech integration crucial to attract younger clients

One-in-four advice firms are using 15 different advice technology tools, presenting an opportunity for this to be consolidated and streamlined, according to Netwealth.

Speaking at the Pinnacle Investment Summit, Matt Heine, joint managing director of Netwealth, said the average number of different tools used was 13 but 38% were using more than 15.

This built up a “rich client data environment” of details such as interactions with their adviser, investment details, personal details and fees and insurance details.

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However, there were ways that this could be better integrated, said Heine, to improve the client experience.

“We see opportunities to connect and integrate client data, the starting point would be integrate commission software, CRM [customer relationship management] and investment platform using tech solutions,” Heine said.

“In the last 12 months, there has been a steady growth in advice firms using integration technology with almost one in five using it in their practices.

“This will give clients greater clarity of investment performance, revenue, asset allocation and expenses. This improved transparency is really important especially for younger clients who are expecting greater control of their wealth.”

Heine described these younger clients as “emerging affluent” who had higher than average income, strong appetite for investment and were set to inherit from their baby boomer parents. They were also advisers’ clients of the future as they controlled $2.2 trillion in household wealth.

“They have grown up as digital natives, 79% are extremely confident to use technology or digital services,” Heine said.

“A third manage their investments monthly online and 51% manage their super online monthly. Emerging affluents manage their money online, order a pizza online and stream a movie Netflix so they expect every interaction to be digitally-led including with their adviser.

“Advisers will need to double down on their digital activity but the pay-off could be huge as they are the clients of the future.”

 




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