We all know the need for advice is growing but advisers are struggling to deal with the volume
BACKGROUND / INTRODUCTION
- Building business models that will thrive in a post MIFID II world. The need and demand for advice is growing, but how can we service the masses and more clients when the cost of servicing is also increasing?
- 50% of clients will be over 50 by 2020
- How can you engage with next generation clients?
- Managing CIP in-house – pros v cons – costs and risks
- Has MIFID II influenced how business owners structure their business?
- Is technology playing a more significant role in keeping clients updated and engaged?
- How has MIFID II impacted the way advisers work with new and existing clients?
- How are you segmenting clients?
POINTS DISCUSSED AND DEBATED
- Pension freedom has changed the way customers engaged more than MIFID II
- More administration involved in servicing clients – technology is helping but not enough time to serve all clients
- Productivity levels are increasing but profit margins are down – fixed overheads including additional staff are biting
- PROD rules are also impacting amount of administration on serving clients
- Firms considering outsourcing CIP as the costs and risk to client are increasing
- Hybrid CIP arrangements with DFM’s starting to be more common
- Business/investment specialists play active part of the investment committee as opposed to running money in-house
- Volume of business via Model portfolios starting to grow
- Pure fee models still the exception – slow transition post RDR
ACTIONS AND POSSIBLE SOLUTIONS
- Increase client retention through developing an improved experience – create differentiation factors!
- Review viability of existing model – where are the profitable client segments
- Identify areas where technology can deliver efficiencies in process – gift of time!
- Mapping the processes to make marginal differences
- Review service proposition as to where clients see value
- Investigate ways to attract and retain next generation clients
Experts: Dave Fewtrell and Paul Lanigan
Facilitator: Dave Edwards – Esperto Business Solutions