This document discusses using technology to improve efficiencies and reduce costs in financial advising. It reports the results of surveys of financial advisors on their current use of technology. The surveys found that advisors enter the same client data into an average of four separate systems. Respondents felt that integrating systems could significantly reduce costs and improve productivity. However, many advisors are not realizing these benefits due to systems that do not communicate with each other and the costs of transitioning to new technologies. The document proposes using technology to improve client access to documentation and valuations or to enable new forms of customer engagement.

1. Meeting of Minds discussion pack Using technology to increase efficiencies and reduce operational costs (& change the game) | 1st December, 2010

3. ‘Changing the game’

4. A new operating model

6. DT IFA survey, June 2010, 152 responsesSource: DT Survey of Meeting of Minds members, November 2010 45 responses

7. What’s driving technology use? The need for consistent processes and cost reduction along with enhancing existing customer relationships and risk profiling 3 Source: DT Survey of Meeting of Minds members, November 2010 45 responses

8. Why aren’t benefits being seen? Systems not talking to each other and the cost of change. On average advisers key data into 4 separate systems to complete a case 4 Where do you normally enter data and where will you re-enter the same data to complete a case? Source: DT Survey of Meeting of Minds members, November 2010 45 responses Source: DT Survey of IFAs, June 2010 152 responses

9. Applying technology to key processes and integrating them should deliver significant cost reduction / productivity improvement 5 All respondents “On average, how long do you spend on the following tasks?” “On average, how long do you spend on the following tasks?” Respondents where technology is used on a task ‘often’ or ‘all the time’ Source: DT Survey of IFAs, June 2010 152 responses

10. How could online technology be used with customers? Improving access to documentation, valuations and adviser contact are seen as important. Newer forms of engagement seen as important by almost 50% 6 Source: Google 2010 Source: DT Survey of Meeting of Minds members, November 2010 45 responses Source: DT Survey of IFAs, June 2010 152 responses

11. Should future operating models revolve more around the front office and direct interaction with customers than the traditional back office? Adviser Adviser Customer Call centre Mobile Front office and customer facing Front /middle office Paper & tools Back office Transactions Multiple wrappers Valuations Rebalancing Platform(s) Providers/platforms 7

12. Technology is clearly key to cost reduction, consistency of process and new forms of customer interaction however there are significant inhibitors 8