Disruption could be the best thing ever happened to your business

There doesn’t seem to be a day that goes by without someone announcing a new robo-advice offering, mentioning about ‘fintech’ or telling us we need to be more innovative. Throw in the word ‘disruption’ and you are guaranteed to invoke emotions ranging from excitement, inspiration, all the way down to skepticism, anxiety and downright denial.

These terms are often misused, so it’s no surprise many are confused or simply turn off. The problem is that most of the debate and commentary has been stuck around “Robo Advice’ and whether financial planners (humans) will be replaced by robots.

The truth is, your business will go through disruption in the next few years. The advancements in technologies, changing demographics, social trend, and regulations, have either killed existing business or created new ones and changing the way things are done.

In it’s recent global research (“The global Distribution Marketing Consumer”) Accenture found that a growing number of consumers are willing to accept robo-advisory services for their banking, insurance and retirement planning. But, the study also found that human interface is still required to help deal with complexities and getting things done.

If you’re a financial adviser, think less about whether ‘Robo-Advice’ will replace you. Concentrate more on how you can use innovations in technologies and outsourced services to improve your client experience. This will also make your business more efficient, protect and increase revenues while improving your bottom line over the longer term. Here are 3 things you can do to get you started:

1. Review and challenge what you provide clients. Compare this to what’s available online.

If a client can obtain services quicker, cheaper and more effectively than you providing it, then you might get disrupted. There was a time when offering your client face to face meetings and a beautifully bound report of their investments for the past twelve months was considered a ‘platinum’ offer. Today, clients want to be able to connect with you from anywhere and (almost) anytime. They expect you to be on top of their position and affairs. They can get reports online at the press of a button, or have reports (loaded with graphs and analysis) sent directly to their inbox. Many will still need advice from you, particularly around important decisions in their lives. So make sure your services are hitting the mark and that you’re truly making a difference to their lives.

2. Survey your clients – talk to them, ask them.

Understand what’s important to your clients and be prepared to customise where it makes sense to. Ask them how they prefer to receive your advice or services, when, where and how often. Be aware of what they really think of the services you are providing today or how you provide to them. It is important to survey your clients, so you can gauge whether ‘value’, in your eyes, is the same for them.

3. Look for disruption in your own backyard – your back office – and turn it on its head.

Evaluate all the repetitive tasks being performed and challenge whether any of these can be outsourced (or done offshore). Or maybe they can be performed better using new technologies. Operational efficiencies arising from cloud based client and risk profiling, asset allocation and investment selections, as well as middle and back office automation and off -shoring may enable you to capture and service a broader set of clients. You might also retain and grow profit from your existing clients. Some of the tasks being outsourced are virtual assistants, para planning, lead generation, digital marketing, form completion and lodgment. This isn’t necessarily about saving on costs because it can lead to better outcomes. It will also let you reinvest any savings back into strategic growth priorities.

Robo-advice, fintech innovation, new technologies, outsourcing, offshoring aren’t going away. Yes, they will cause challenges and disrupt your business. But, those who embrace these changes will emerge with stronger and more successful businesses in the long run. Embrace innovation and new technologies to take disruption head on.