3 Ways Advice Firms Are Using Digital-Hybrid Advice
Digital-hybrid advice is gaining momentum as everyone from Super funds and Banks to accounting firms and financial advice practices see it as the answer to closing the advice gap and meeting increased regulation.
Using the power of technology to produce compliant SoAs and combining it with the ability for clients to interact with a human when they want and need to, digital-hybrid advice is on the digital roadmap for many.
This article explores three ways financial advice firms use it to future-proof their business, build a sustainable pipeline, and grow.
1. Nurture the long-term client pipeline
With the price of delivering face-to-face advice rising nearly 60 per cent over the past five years(1), nurturing clients who aren’t quite ready for comprehensive advice has been costly. Stringent regulations applied to all clients, no matter their wealth, have resulted in a prohibitive cost to serve. Over the last few years, advisers have collectively let go of over 500,000 low-fee clients to stay profitable or because it’s uneconomical to service them(2).
Now that technology and regulation are aligned, hybrid or fully digital advice is being used to keep lower-fee clients warm and form part of an overall long-term pipeline strategy.
“I have been working on designing the future of financial advice, and moneyGPS plays a role in assisting us in servicing and nurturing more customers through a digital advice platform, thus increasing their access to advice. This nurturing and fulfilment of simple, on-demand advice needs will help these customers eventually become clients of our comprehensive advice services. This will enable us to build long-term sustainability through lower client acquisition costs.”
Arthur Kallos, Executive Managing Director of Spark Financial Group
2. Attract digitally-savvy children of HNW clients
A significant portion of Australian households aged 55+ currently own a combined $2.8 trillion(3) which is expected to be passed on over the next decade or so. Financial advisers have spent their careers supporting these clients to build that wealth, so they are actively seeking ways to engage Millennials and Gen X—the recipients of the great wealth transfer.
The Financial Planning Standards Board said that Millennials are open to financial planning, with two-thirds of those who do not have a financial planner considering paying for advice(4). But they are looking for more convenient ways to access that advice.
Almost all generations are now ready and willing to trust technology to manage their finances, and research from the US suggests that around one-third of Gen X specifically consider a wealth manager’s digital capabilities before choosing an adviser(5). Similarly, research by Netwealth into the aspects of advice most valued by consumers found that digital capabilities and innovation were both important(6).
Having a digital advice offer is no longer a nice to have; it’s essential, especially if practices want to entice prospective clients.
3. Create a new revenue stream with minimal investment
Traditionally, creating a new revenue stream in an advice practice involves significant time, resources, and risk. That is no longer the case with a hybrid-digital advice platform such as moneyGPS.
Monthly subscriptions for practices start at $530+GST per month per office with no lock-in period and have the ability to cancel at any time. It’s now within any firm’s budget to integrate hybrid-digital advice into their customer experience.
With the option to include done-for-you marketing, a white-labelled advice platform and integration of products, practices can get a customised out-of-the-box digital advice solution in weeks for a fraction of the cost of building it themselves.
80% of commissions from SoAs and other financial services are returned to the subscribing practice and the other 20% to GPS-supported charities, meaning practices see a new revenue stream open up within a few months of subscribing.
Future-proofing an advice practice while growing today
Financial advice firms implementing digital-hybrid advice are investing in the future of their business by enabling cost-effective servicing of low-fee clients, keeping them warm until they are ready for a comprehensive advice offer. They have digital capabilities that appeal to the children of existing HNW clients, and, if using moneyGPS, their bottom line benefits today by receiving commissions from any sales through the platform.
If your practice is ready for digital-hybrid advice, chat with our Concierge Service on 1300 242 442, who can set you up over the phone.
Share this article
LinkedIn
Facebook
Twitter
WhatsApp
Email
About
accountantsGPS and moneyGPS SaaS products provide affordable, compliant digital advice and SMSF services, to Australians through; Institutions, Accountants, Financial Advisers, Superfunds and Employers.
Recent Posts
Follow us
Interesting article? Sign up for our newsletter.
Fiduciary is an Australian Fintech and owner of accountantsGPS and moneyGPS—SaaS products that provide affordable, compliant digital advice and SMSF services, to Australians through; Institutions, Accountants, Financial Advisers, Superfunds and Employers.
Designed by finance industry stalwarts George Haramis and Drew Fenton and created by a team of tech heads, it combines all the brilliant parts of the financial services world in a simplified, user-friendly way.
accountantsGPS integrates with BGL’s API extracting data from BGL’s Simple Fund 360 SMSF administration software to produce a digital SMSF Check-Up report.
MENU
GET IN TOUCH
Reg Office – Level 6, 607 Bourke Street, Melbourne, VIC, 3000, Australia