Digital Fact Finding and the Automated Future of Financial Advice
Automation and technology have completely transformed the financial advisory space. One aspect where this shift is particularly evident is in fact finding—a process that has traditionally consumed a substantial amount of advisers' time and effort. By leveraging technology to streamline this essential task, firms can do more with less, freeing up valuable time to focus on what truly matters: building strong client relationships.
The Rise of Digital Fact Finding
Digital fact finding replaces traditional paper forms and face-to-face interviews with interactive online questionnaires, secure document uploads, and real-time data synchronisation to gather crucial financial information from clients. When FE fundinfo conducted a study of leading financial advisers, we discovered that 55% are already taking a technological approach to fact finding, validating its growing penetration in the industry.
And it comes with several self-evident benefits.
Enhanced Efficiency
Digital fact finding in the advice process drastically reduces the time spent on administrative tasks. With features like seamless back-office integration and one-click sending, gathering essential information becomes significantly easier. This efficiency allows financial advisers to dedicate more time to providing financial advice and nurturing client relationships.
Improved Accuracy
Manual data entry is prone to errors. Digital fact finding minimises these risks by allowing clients to input information directly, often with built-in validation checks which ensures that advisers are working with the most accurate data possible.
Comprehensive Data Collection
Digital platforms like FE Onboard Client Portal guide clients through a thorough fact-finding process, ensuring no crucial information is overlooked. This comprehensive approach, coupled with features like open banking integration for accurate expense information, provides a solid foundation for goal-based planning.
How Automation Strengthens Client Relationships
While automation might seem impersonal at first glance, it actually has the potential to enhance client relationships in several ways. By reducing time spent on administrative tasks, advisers can dedicate more time to meaningful interactions with clients. The implementation of a sleek, user-friendly digital interface meets the expectations of clients today, demonstrating the adviser's commitment to providing cutting-edge services and enhancing the overall client experience.
Digital fact finding also empowers clients by giving them more control over their information. This allows them to update their details at their convenience, creating a sense of ownership in the process. Furthermore, with comprehensive and accurate data at their fingertips, advisers can provide more tailored, insightful advice. This data-driven approach strengthens the adviser's value proposition to clients as it demonstrates a deep understanding of each client's unique financial situation and goals.
The Automated Future of Financial Advice
As one adviser in the recent FE fundinfo study noted, "We plan to implement AI where possible. This is likely to reduce costs and the reliance on research tools, client portals and digital fact-finding, as meeting notes can be used to drive the entire advice process – from assessing clients' objectives to risk assessment capacity for loss through to suitability recommendations."
This pro-automation sentiment underscores the exciting possibilities that lie ahead. By embracing digital fact finding and other automated solutions, financial advisers position themselves as pioneers, offering clients an easy, efficient, and secure way to share their financial information while equipping themselves with the tools to provide more informed, tailored advice.
Transitioning to digital fact finding doesn't have to be daunting. Let FE fundinfo walk you through how to implement a solution that you and your clients will love.