The efficiency of software systems is currently a major short-term concern for financial planning firms, according to research from Paragem Dealer Services.
A recent survey of more than 50 large and smaller Australian financial services license (AFSL) holders has found that the simplicity and effectiveness of financial planning software has come under the spotlight for advice firms following the market downturn.
“When the market was rising and new client growth was good, practices tolerated hard to navigate front end software from the two major providers, including the amount of re-work that had to be done,” Paragem managing director Ian Knox told InvestorDaily.
“However, when revenues dropped they saw planning software as annoyingly hard to use for reviews and cumbersome to learn how to get efficiency out of their practices, particularly if non-income producing admin staff were laid off.
“Planning practices suddenly wanted the simplicity of an effective review process that was linked to their business process so that they could manage their clients’ affairs quickly, compliantly and cost effectively.”
The survey also identified that the quality and retention of staff, as well as how to run an advice business in the changing world, were other major areas of concern for financial planning practices.
“The ability to understand how to adjust your business to where the future is heading from a staffing point of view was an issue that featured quite strongly,” Knox said.
“People understood that they needed to change, but they didn’t know how to recruit and hold staff who they could make the adjustment with, and that’s a typical SME [small to medium enterprise] challenge – staffing is one of the biggest issues in small business.”
