Advice firms need to get the balance right between adopting technology and making sure it does not end up costing their clients more, Aberdein Considine Wealth chief executive Jen Paice has warned.
Speaking on a panel at the Lang Cat’s HomeGame 4 event in Edinburgh yesterday (3 October), Paice said firms need to consider the impact of tech adoption on the client.
“At some point, it may end up costing them more, and that’s my concern,” she said.
“We want to deliver better services but also reach more people and, for that, we need technology.
“It’s a fine balance between adopting technology and making sure it doesn’t end up costing the client more.”
She said there is a lot of talk about how technology should reduce costs, but “there’s a concern it might have the opposite effect”.
“For example,” she added, “we are a fixed-fee financial-planning firm, so it’s essential for me to be as efficient as possible if I want the business to be more profitable.
“My view on technology is that it should give me more time to think and, ultimately, it’s that thinking time from a chartered financial planner that clients are paying for.”
On the same panel, FNZ group head of UK, Middle East and Africa, Alastair Conway, said technology should remove friction and reduce costs.
“As long as advisers are delivering extra value or cost reductions to clients as a result of using technology, I think it’s fine,” he said.
“In my experience, most advisers have used technology for the benefit of their clients, which is how it should be.”
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He suggested that, as things evolve, advisers should be able to spend less time on administrative tasks, like filling in forms, and more time on valuable interactions.
“The real value of advisers, from my experience, is the unique ‘magic’ that happens when they sit down with an investor and do what only they can do,” he added.
“While 90% of what advisers do may be broadly the same, it’s the 10% difference that sets them apart and allows great firms to flourish.
“This can be achieved at scale or within smaller firms, and that’s where technology plays a crucial role.”
