Cinderella and BOGOF (‘buy one get one free’, for those not in the know!) deals aren’t your usual pairing, but when it comes to realising the full potential of client portals, they seem to be inextricably linked. At least, that’s what we’re hearing from firms.
While not quite consigned to a life of menial tasks like the protagonist in the fairytale, client portals have yet to don their full finery and be invited to the adviser tech stack ball in their own right.
The ticket here is delivering all-important efficiencies and capitalising on an opportunity to cost-effectively bring on clients in the early stages of accumulation, as well as provide ongoing support for those whose needs are no longer complex.
The barrier to going to the ball? For a great many advice professionals, it is the psychology of client portals being the ‘F’ in BOGOF tech packages.
You value what you pay for. And if you are getting something for free already, you’re unlikely to go out of your way to add more fixed costs to your business by switching to a stand-alone offering that you have to pay for.
Feedback from advisers, paraplanners, and administrators alike suggests that while functional, client portals singularly fail to impress
Yet, the adviser reviews we got for the latest report in the NextWealth Adviser Tech Stack series show client portals – which have the potential to offer so much – remain an underwhelming area of the adviser tech stack, consistently receiving adviser reviews of around 3 out of 5.
Feedback from advisers, paraplanners, and administrators alike suggests that while functional, client portals singularly fail to impress.
The lack of enthusiastic feedback and user reviews in the 3s (out of 5) imply that not only are client portals not delivering experiences that excite – in many cases, they are merely tolerated rather than valued by both advisers and their clients.
And therein lies a persistent problem. Client portals continue to ‘do the job’, but it’s perhaps not the job they could be doing.
Financial advice professionals tell us they want intuitive, integrated, client-friendly solutions that centralise communication, documentation, and audit trails. Yet, the majority continue making do with underwhelming tools.
And, we get the sense from our latest round of adviser, paraplanner, and administrator ratings of advice tech that it largely comes down to there being no discrete fee charged for the service.
Beyond efficiency, there’s increasing focus on how technology can help firms serve more clients, reduce cost to serve, and lower traditional barriers to advice.
Firms recognise that better solutions exist, however the hassle of migration and retraining makes them reluctant to move
The FCA’s proposed targeted support regime adds further weight to this shift, offering firms more flexibility to engage clients with simpler needs, without triggering full regulatory advice requirements.
Firms recognise that better solutions exist, however the hassle of migration and retraining makes them reluctant to move.
The pull factor, therefore, needs to be Herculean in strength to scale the ‘too cumbersome to move’ hurdle, which is how one adviser described it.
It seems the art of the possible isn’t getting a chance to shine. All-singing, all-dancing client portals deserve an invitation to the ball.
Firms are potentially missing out on efficiency and cost-saving gains, and are being left exposed because of inconsistent audit trails thanks to duplicated communication channels.
The challenge for the new entrant isn’t just functionality, but justifying its cost when the incumbent is free
Meanwhile, clients have little to draw them in to engage fully with the portal and are left perplexed when they have to switch to email just to e-sign a document because the client portal doesn’t support the firm’s preferred service.
The challenge for the new entrant, then, isn’t just functionality, but justifying its cost when the incumbent is free.
The fairy godmother has a job on her hands to turn that particular pumpkin into a carriage capable of getting Cinders to the ball.
Heather Hopkins is managing director of NextWealth
