Lower costs, better processes: Future bright for advisers
Mike Naylor, a senior lecturer in the Massey University school of finance, has released a new book that predicts an IT revolution in the financial services sector.
But while changes were needed for advisers, Naylor said they were better placed than the insurers and product providers to respond.
"They will have to understand which aspects of their advice follow programmable rules, and can therefore be replaced by software, and which aspect is too complex or psychological to be replaceable. Involvement in activities which create client trust is the most important concept.”
To survive, advisers would need a well-run practice, and to have delegated the routine tasks, like answering clients phone inquiries or tracking transactions or calculating sums producing reports, to lower-paid assistants, he said.
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