The upcoming Future of Financial Advice (FOFA) reforms are expected to lead to an increased focus on efficiency, mostly through greater use of technology, a survey of financial advisers commissioned by Zurich Australia has shown.
The survey of 213 advisers, conducted by Beaton Research in December 2012, found that 40 per cent of advisers are becoming more efficient in the way they deliver advice, citing FOFA reforms as the biggest catalyst for change.
There is a clear gap between the cost of providing quality advice and what consumers are prepared to pay, and FOFA is expected to add more cost pressures.
“Enhancing the efficiency with which advice can be delivered is not just about cost containment it’s about value; the value advisers offer to their clients and the value they are able to capture for their business,” Zurich general manager of life and investments Philip Kewin said.
He explained that the move towards greater efficiency will lead to an increased focus on technology.
According to the survey, advisers said technology would more effectively improve efficiency over other initiatives such as outsourcing, client segmentation, and process re-engineering.
Approximately 55 per cent of surveyed advisers said that making more use of technology, including mobile technology, is important or very important in terms of their ability to improve efficiency.
“We are already seeing strong evidence that advisers are acting on this sentiment, with a 2011 survey finding that 34 per cent of advisers owned a tablet, up from just nine percent in 2010,” Mr Kewin said.
“Of those with tablets, 21 per cent used them with clients in 2010. By December 2012 that figure was up to 31.9 per cent. We think this number will grow over time, in line with increased consumer ownership of these devices and ongoing development of apps tailored to the specific needs of advisers.”
