3. Keeping data secure
With today’ s 24 / 7, on-demand technology, clients are increasingly seeking more frequent interaction with their finances digitally, alongside face-to-face contact with their adviser at an annual meeting. By embracing this switch to digital, and using technology to exploit client data, firms can improve the client experience and drive business growth.
2. Driving engagement through data visualisation
Helping your clients understand where their finances are and where they need to be to meet their financial goals is increasingly important in the financial advice process. Feeding client data into cashflow planning tools brings that data to life, helping you build, stress-test and adapt the financial plan while visually engaging your clients, via interactive charts and graphs.
Knowing that their finances are on track will foster greater confidence in the advice process, making sure clients stick to the plan. However, such tools are only as good as the data you put into them – having access to accurate information is crucial.
Creating an emotional connection between your client and the advice process through data visualisation can encourage greater engagement with the plan. Giving your clients a clear picture of their future finances also helps demonstrate the value of your advice, supporting the Consumer Duty focus on price and value.
With data security a major concern for many people, providing your clients with a secure messaging functionality can offer peace of mind that you are taking your responsibilities around their information seriously. Secure messaging via a client portal enables you to store and share documents conveniently and safely, and allows clients to sign and return them electronically. This streamlines the advice process and reduces costs, removing the need to print and post paper documents.
Using secure messaging can also make sure you do not fall foul of the Information Commissioner’ s Office( ICO). The ICO’ s latest data shows that 248 reports of personal data breaches were received for the finance, insurance and credit sectors in Q2 2024.
While phishing caused the greatest number of problems, with 56 reports, the second most common breach in our sector was data being emailed to the incorrect subject, with 45 reports.
Even with the rise in digital communications, data being faxed or posted to the wrong person still accounted for 20 breaches during the quarter. Given that the ICO can impose fines of up to £ 17.5m or 4 % of annual turnover for the most serious infringements, ensuring client data is handled securely is crucial.
How we can help
We now operate online in so many aspects of our lives, that clients increasingly expect the opportunity to interact digitally with their financial planning too. Of course, there is still an important place for face-to-face advice, but by using technology to make the most of your client data, you can deliver the best outcomes for both your business and your clients.
According to 2023 research by Morningstar, consumers cite the emotional parts of the process, such as providing reassurance and guidance, and creating trust in the plan as the reason they take financial advice, rather than financial aspects like being on track for retirement or setting up specific products.
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