The clock is ticking… Making use of technology

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The clock is tickingMaking use of technology

• Presented by
• John Deane
• Chief Executive Officer, Royal London
  Intermediary

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The adviser experience - now
admin
admin
admin
MEET CLIENTS
FIND CLIENTS
travel
approach letters
explaining services
newsletters
cashflow planning
seminars
admin
admin
research
annual reviews
report writing
portfolio management
portfolio creation
ad hoc queries
ADVISE CLIENTS
MANAGE CLIENTS
admin
admin
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The adviser experience after 2013?
MEET CLIENTS
ADVISE CLIENTS
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Changing times - regulation
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The customer experience

• Our analysis of the true cost of servicing
  clients with modest portfolios suggests that in a
  post RDR world, advisers will struggle achieve
  profitability if they seek to apply traditional
  processes and procedures using the new economic
  model imposed by RDR.
• Equally, many advisers have a strong to desire to
  continue to provide a service to customers across
  a wide spectrum of incomes and are resistant to
  the idea of no longer supporting clients outside
  the High Net Worth category.
• To provide good value to customers at an
  affordable cost, advisers may need to adopt very
  different processes to those that they have
  preferred historically. There may be a need to
  recognise that good advice that a customer can
  afford may be better value than best advice
  which involves a level of cost that undermines
  the benefits.

Our analysis of the true cost of servicing
clients with modest portfolios suggests that in a
post RDR world, advisers will struggle achieve
profitability if they seek to apply traditional
processes and procedures using the new economic
model imposed by RDR. Equally, many advisers
have a strong to desire to continue to provide a
service to customers across a wide spectrum of
incomes and are resistant to the idea of no
longer supporting clients outside the High Net
Worth category. To provide good value to
customers at an affordable cost, advisers may
need to adopt very different processes to those
that they have preferred historically. There may
be a need to recognise that good advice that a
customer can afford may be better value than
best advice which involves a level of cost that
undermines the benefits.
Pensions - Delivering Value to Middle Britain. A
market Perspective. FTRC 2011
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PS 11/09 - Platforms

• The adviser needs to take into account whether
  being on a platform is in each individual
  clients best interests and ensure any personal
  recommendation to invest via a platform is
  suitable. It is important to stress that this
  will not always be the case. If being on the
  platform gives the client a materially worse
  outcome than being off it, (for example, the
  costs are significantly higher on the platform),
  the adviser should clearly not be recommending
  using a platform for that client. We expect an
  independent adviser to be able to demonstrate why
  using a particular platform is suitable for an
  individual client, and this involves not just
  looking at one platform over another, but also
  looking off platform when appropriate to do so.

The adviser needs to take into account whether
being on a platform is in each individual
clients best interests and ensure any personal
recommendation to invest via a platform is
suitable. It is important to stress that this
will not always be the case. If being on the
platform gives the client a materially worse
outcome than being off it, (for example, the
costs are significantly higher on the platform),
the adviser should clearly not be recommending
using a platform for that client. We expect an
independent adviser to be able to demonstrate why
using a particular platform is suitable for an
individual client, and this involves not just
looking at one platform over another, but also
looking off platform when appropriate to do so.
PS 11/9 Platforms Delivering the RDR and other
issues for platforms and nominee-related
services. FSA August 2011
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FSA principles

• Firms should only be paid for the advice and
  services provided1
• Costs must be appropriate to the customer2

• 1 CP09/18 Distribution of retail investments
  Delivering the RDR FSA June 2009
• 2 Quality of advice on pension switching an
  update FSA April 2010

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The customer experience
Traditional service
Core service
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The customer experience
Traditional approach
New Model Advisor
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Changing times - technology
TECHNOLOGY at hand today
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Technology
Making it work for you

• Consistency
• Efficiency
• Information handling
• Processing
• Sharing
• Managing
• Storing
• Analysing

Saves time!
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Advice process
Platform
Platform tools
Find clients
Meet clients
Advise clients
Manage clients
Cashflow management
Database information
CRM
CRM
Back Office
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Finding New Clients
Find clients

• Sources
• Existing client base
• Referrals
• Business groups
• Websites
• Business directories
• Social networks

• Possible solutions
• Website
• Banners
• LinkedIn
• Twitter
• On-line advertisements
• Word of Mouth
• Lead Generation Solutions
• Back Office Systems

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Meeting clients
Meet clients

• Tasks
• Fact find
• Cashflow modelling
• Risk assessment

• Possible solutions
• Financial Planning tools
• Go to meeting
• Skype
• Telephone

Fact find solutions
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Advising clients
Advise clients

• Tasks
• Valuations
• Portfolio modelling
• Fund research
• Product comparisons
• Illustrations

• Possible solutions
• Illustration tools
• Planning tools

Comparator 2
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Managing clients
Manage clients

• Tasks
• Contacting clients
• email
• newsletters
• Keeping information up to date
• Actioning changes
• Regular reviews

• Possible solutions
• Portfolio rebalancing
• Contact management
• CRM systems

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and managing the business!

• Tasks
• Time logging
• Record keeping
• TCF
• Case checking
• Business monitoring
• Commission checking
• Staff training
• Recruitment development

• Possible solutions
• Task management
• Back office
• Personnel systems
• CBT
• CPD/Gap-fill tools

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Making it work

• Integration is key

Source 2010 RIA Benchmarking Study. Charles
Schwab
CRM
Portfolio rebalancing
Cashflow planning
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Making it work

• Integration is key

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Other solutions

• Outsourcing
• Make full use of staff
• Paraplanner
• Admin staff
• Providers
• Investment houses

Its not all about you!
DONT do everything yourself!
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Paraplanners are worth their weight..

• Setting up meetings
• Researching products and funds
• Preparing and maintaining clients files
• Preparing draft report suitability letters
• Checking paperwork
• Preparing annual reviews
• Obtaining fund values projections

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Summary

• Business change is coming
• You need to manage your time
• Concentrate on what youre good at
• Find someone, or something to do everything else!
• Technology is the future

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Further Information
www.scottishlife.co.uk
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• Questions?

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Important information
The information in this presentation is based on
our current understanding of current Legislation,
Regulations Consultation and Review Documents.
These may be affected by future changes.
Scottish Life, St Andrew House, 1 Thistle Street,
Edinburgh, EH2 1DG.  Scottish Life is a division
of Royal London and markets products produced by
Royal London.  Royal London consists of The Royal
London Mutual Insurance Society Limited and its
subsidiaries.  The Royal London Mutual Insurance
Society Limited provides life and pension
products, is a member of the Association of
British Insurers and the Association of Financial
Mutuals and is authorised and regulated by the
Financial Services Authority, registration number
117672. Royal London Marketing Limited acts as an
insurance intermediary for other providers of
general insurance and other life assurance
products and is authorised and regulated by the
Financial Services Authority, registration number
302391.  RL Corporate Pension Services Limited
provides pension services and is authorised and
regulated by the Financial Services Authority,
registration number 460304.
Please note that Scottish Life is not
specifically recommending any of the external
software shown, and are not responsible for the
content of any the websites other than our own
September 2011
2TPR0428