3 common misconceptions around increasing client access to data

In the past decade technology has become an integral part of the advice journey, helping to add value and deliver better client outcomes.

Our analysis of Intelliflo Office users tells us that best use of technology can make an enormous difference to the success of advice businesses.

And although the case for embedding technology into advice processes seems conclusive, there are still some areas where firms are less convinced it can add value.

For instance, some firms are nervous about offering clients access to financial planning information digitally via a client portal. 

I spoke to Jeff Lange, chief executive of The Financial Advice Service and an Intelliflo client, about his take on three common misconceptions around giving clients greater access to data within the advice journey.

1. Clients do not care about online access

Accessing information and completing transactions online has increasingly become the norm in recent years.

Over the past 10 years, internet transactions have risen from 11 per cent of total retail sales to almost 27 per cent last year, according to the Office for National Statistics. 

This growing familiarity with online services is driving similar expectations within financial advice too.

People want to be able to access their financial planning information themselves digitally, alongside phone calls, emails and face-to-face meetings.

Using a client portal connected to your practice management system is an easy way to give clients access to data and offers the additional benefits of sharing and signing documents electronically, to speed up transactions and reduce admin.

In today’s connected world, there is a growing expectation that we can deal with providers across multiple channels.

Lange says that digital access is becoming so important that firms who do not offer it risk being left behind: “People expect to interact with things at their own convenience and at a time that works for them. They want to see and feel what is happening now, as opposed to getting an update every six to 12 months.

"And they want information to be presented to them in a user-friendly way. The personal finance portal is central to how we work and engage with clients, but I would argue it is an essential piece of kit for any adviser. Firms who aren’t using one are now way behind the curve."

2. Older clients do not want to use digital

It is generally accepted that younger people are more likely to want online access.

Ofcom figures back up the fact that young adults spend more time online, with 18 to 44-year-olds spending more than four hours a day online on average, compared with around three and a half for 45 to 64-year-olds and two and three-quarters for the over 65s.

However, when it comes to financial advice, it seems the reverse is true.

Previous analysis of Intelliflo personal finance portal usage found that clients in their 50s and 60s were the most frequent users and were nearly twice as active as those in their 20s and 30s. 

Lange has a similar experience with his client base: “We’re most likely to see someone in active drawdown regularly using the portal to assess their portfolio and give us updates on any changes in circumstances or new objectives, rather than someone still in the accumulation stage making regular contributions.”

3. Using technology inhibits the human relationship

In today’s connected world, there is a growing expectation that we can deal with providers across multiple channels.

While two-thirds of retail sales are in physical stores, the shopping journey is becoming more hybrid.

Research by Barclays suggests that just 26 per cent of consumers research new products in-store only, with the majority preferring to do so both on and offline.

The analysis also finds that just over 50 per cent of retailer revenue is driven by digital channels, far higher than actual online sales according to ONS data, reflecting that consumers are engaging digitally, but often complete a purchase in-store.

Lange says that rather than detract from the human relationship, providing digital access via a portal in the firm’s brand can actually reinforce the importance of the adviser within the client’s financial ecosystem.

The advantages of using technology to improve efficiency within the advice process are well-established.

He explains: “When looking at the value a firm provides its clients, being able to say 'I've got a digital portal where my clients can interact with me and access information whenever they want' is really powerful.

"And as the portal is in our firm’s brand, we’re a constant companion for the client, so to speak, when they access their financial planning information. It reinforces our unique position as the intermediary between the consumer and the wider marketplace and helps clients recognise the value we provide.”

The advantages of using technology to improve efficiency within the advice process are well-established and extending this by allowing clients to access financial planning information digitally can also be hugely beneficial.

Not only can it reduce the administrative burden by enabling clients to receive, sign and return documents and update their personal details securely online, but it can also improve engagement and underscore the value of advice. 

With people of all ages becoming evermore comfortable transacting online, firms need to consider how to meet increasing client expectations of digital access, or risk falling behind the rest of the profession.

Richard Wake is the chief customer officer at Intelliflo