Valuations Technology
New research¹ from threesixty services, the fee-based IFA support services provider, reveals three out of four IFAs who transact online would like to see product providers target their technology spend over the next five years on improving electronic valuation services.
On a scale² of one to five, prioritising spend on valuation services was ranked as ‘very important’ by 75 per cent of IFAs. Providing data for commissions was ranked second, with 43 per cent rating it as very important. IFAs regarded assistance with costs and services on hardware, such as laptops and PCs for advisers, as being the least important area for future investment, with just 10% of IFAs regarding it as very important.
Valuations and the creation of portfolio reports were considered to be the most labour-intensive activities that IFAs would like technology to assist them with, followed by researching products and commission reconciliation.
Phil Young, Partner at threesixty, commented: “For those firms that have embraced back office systems, it is understandable that the ease and speed of the production of portfolio reports is the most valued piece of functionality available. The ability to download valuations online is key. It provides a quick return for advisers, who are able to provide a service to their clients that not only looks good, but represents good value for money to their client.
“Providers would be wise to take note of IFAs’ demands and concentrate their efforts on these areas going forward as efficiency will be improved all-round. They too are likely to reap the rewards further down the line.”
Among those IFAs surveyed3 who do not currently transact online, the majority (57%) said the main reason for not submitting electronically through any provider was the need to post the paper anyway. Lack of training was said to be the next biggest reason (39%), followed by online transactions being considered as too time consuming (26%). Only 4% blamed technology problems.
Notes
1 Research conducted among 132 IFAs in April 2006.
2 One = most important, five = not at all important
3 Research conducted among 23 IFAs in April 2006.