Embracing advice technology will help advisers struggling to manage the multiple demands of their business, an international fund manager has said.
Vanguard chief executive Tim Buckley said while some advisers might be wary of relying too heavily on automated tools, advice technology would in fact help them streamline their operations and drive more consistent, robust answers, ultimately increasing their business’s efficiency.
“It’s really about how you find time. How can you be more efficient? I would say embrace advice technology,” Buckley said today during the 2021 Vanguard Virtual Roadshow.
“Technology allows advisers to automate many rule-based activities, such as portfolio management and rebalancing. It can simplify some more challenging financial planning tasks.
“They don’t have to build the technology themselves; they can use the technology from firms like Vanguard to make themselves more efficient.”
In addition, he encouraged advisers to consider increasing their virtual interaction with clients, pointing out it would help lower their business costs in the long run, and cited the importance of addressing individual client needs.
“Embrace virtual. We know from experience that you’ll grow the number of quality engagements and you’ll drive your costs down. We’ve done it, advisers can do it too,” he noted.
“Every adviser should embrace their clients’ specific needs. Giving your clients peace of mind is twice as valuable as finding the top-performing fund.
“If you want people to really promote your business, give them that peace of mind.”
In October last year, Superannuation, Financial Services and the Digital Economy Minister Jane Hume confirmed the federal government’s commitment to reducing administrative and operational barriers to allow financial advice to be provided to more Australians more easily.
In May 2020, Class chief executive Andrew Russell said the COVID-19 lockdown had accelerated the uptake of technology in the SMSF sector by a decade and would likely push forward further development by technology providers.
