In most firms I’ve worked with, huge amounts of adviser and administrator time is spent on repetitive tasks that pull people away from where they can add the most value.
A combination of poor software offerings, second-rate integrations and lack of technical adoption sees god only knows how much time poured down the drain at firms across the country.
The good news? Making a significant change is probably easier than you think.
The key automation metric
If we take some statistics from across the pond, we see that on average advisers are spending around 30% of their time with clients. But in larger firms, it’s 62%. The big firms are enabling their advisers to serve 40-50% more client relationships, and that of course translates into significantly more revenue per adviser.
The short end of it is that firms who are effectively adopting process automation are going to be able to totally transform what’s possible when it comes to the headcount required to serve clients.
And as leading firms adopt AI and machine learning, this gap will increase, dramatically.
David and Goliath
The good news is that this vast competitive advantage is not just the preserve of large firms, PE backed consolidators and the like.
Smaller firms, often more agile and with less complex procedures, are ideally positioned to leapfrog their larger counterparts by quickly adopting automation technologies.
Down to brass tacks
While that all sounds lofty and nice, you’re probably wondering what this really means in practice.
Every firm is different, and no two processes are exactly the same. That said, I would hazard to guess that there are multiple areas in your firm with significant automation potential.
Some common examples include:
- Marketing and lead generation
- Lead follow up, call booking and pre call preparation
- CRM data entry and workflows
- Fact find automation
- Pre annual review preperation
- Billing and reconciliation
The diagram below illustrates an example of a fully automated system that follows up with leads from introducers, book calls with advisers, adds data to the firm’s CRM and other systems, send a pre call questionnaire and remind the client in advance of the call.
Even relatively simply automations like this can save vast amounts of time, particularly when a firm has a large volume of leads. It doesn’t take holidays, works 365 days a year, 24 hours a day and costs virtually nothing to run, oh, and it doesn’t make mistakes.
Get your house in order
The first step for any firm looking to maximise automation in their business is to audit their existing processes. Look for repeatable tasks like data entry, client follow up, document generation and so on.
From here, you will likely find opportunities for automation and process improvement.
Put your existing tools to use
Usually, the best place to start is to work within your existing technology stack. Most industry CRMs have some sort of workflow builder, it’s worth experimenting with what’s possible.
You might be surprised to find that your current software already offers robust automation capabilities. Start by identifying routine tasks within your CRM and explore how they can be automated. This could include automating client communication, scheduling appointments, or even generating reports.
By fully utilising the tools you already have, you can make significant strides in efficiency without incurring additional software costs.
Buckle up for AI
While leveraging existing tools is a good starting point, don't shy away from exploring new technologies. AI and machine learning are no longer just buzzwords; they are practical tools that can transform how you work when used correctly.
Start transcribing calls with clients, feed the transcription into an AI model to create follow up tasks, summaries and other documents.
You could even score the quality of advice given using an AI trained on FCA rules and the firm’s best practice, flagging any potential issues to compliance. And of course, logging every step of the process in a fully auditable manner.
All of this is already possible today, and the most innovative firms are doing it.
Just ensure you’re using a AI system with appropriate data protection and security considerations.
Bottom line
I fundamentally believe that process automation is going to offer a significant competitive advantage to firms who adopt it correctly. As AI becomes increasingly sophisticated and integrated into processes and systems, that advantage is going to accelerate.
The lesson of history is clear, technology creates inequality. You want to position your firm on the right side of that sweeping change.
Now is a great time to start adopting process automation throughout your firm.