Joining host Neil Griffiths, in this podcast Stacey gives her take on the rapid changes to the advice industry, calling it “the great advice reset”. Explaining that advisers and providers are interested in evolving with this change, looking to explore and implement different strategies and digital software to ultimately grow in the long term.

You can listen to the full podcast on the ifa website.

The post Midwinter on the ifa show appeared first on Midwinter.

According to the Future Ready IX report released in February, Australian financial advisers are extremely positive about what they can achieve in the coming months.

While few advisers plan to add more staff to their team or work any harder, the majority expect to increase revenue, the number of clients they service and their business profitability.

Against a backdrop where business as usual is incredibly difficult and the entire industry remains in a state of flux, are advisers being overly optimistic?

In this masterclass we cover three areas where technology can help advisers become more efficient, helping them achieve their business objectives.

Click the button below to view the 1-hour recorded webinar now.

Presenters

This masterclass was presented by:

Wendy Van, Product Manager, Midwinter

With more than 15 years’ experience in financial services technology, Wendy is a keen problem solver who is focused on improving customer experiences and outcomes.

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Deborah Dalziel, Marketing Manager, Midwinter

Deborah is responsible for marketing and communications at Midwinter, and has more than 10 years’ experience marketing software and technology solutions.

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Matthew Bineth, Key Account Manager, Midwinter

Matthew is a passionate financial services professional who held roles in financial planning and practice management before moving into financial advice technology.

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The post Masterclass: Practice Efficiency – How Adviser Optimism can be Enabled by Technology appeared first on Midwinter.

With profits down it’s tempting to tighten the purse strings, but while cutting costs might lift profits in the short term, it may not be the best thing for the future success of your advice business.

The same report has shown that while profits have decreased, the average revenue per practice principal has remained steady and the average gross business revenue has increased.

It’s clear that declining profitability is the result of increasing operational costs.

For an advice business to thrive, they need to invest in efficiency-creating systems and processes.

According to Rod Bertino, Principal of Business Health and co-author of Future Ready IX, finding scale through technology would be the “true enabler” of profit.

Technology is an investment, and like any investment, it must deliver a decent return.

It takes time and effort to implement a new piece of technology into a practice, which is often a sticking point for already busy practice principals, according to Bertino. But he notes the efficiencies gained – and potential technology cost savings – make it a worthwhile investment in the long run.

The longer practices wait to update their processes and systems, the more they will spend serving customers using a less than ideal cost structure, and losing potential profits in the process.

While the pace of digital adoption has increased in recent years, particularly since the start of the COVID-19 pandemic, outdated approaches haven’t yet been fully replaced by integrated digital end-to-end processes.

Digital advice technology drives efficiency and offers new ways to engage clients, but it’s not a replacement for the adviser-client relationship which remains an important component of a successful advice business. Bertino points to the survey results of 52,000+ advised Australian clients that indicate the strength of the relationship with their adviser is more important than the adviser’s technical knowledge or the quality of the advice they receive.

However, practices that do not adopt digital advice technology and client engagement tools will be left behind as consumers increasingly demand easier access to services and the changing demographic of people seeking advice is creating a growing number of digitally savvy clients.

Midwinter’s Head of Product Andrew Zietara notes the benefits of systemising practice processes using advice technology extend beyond efficiency. “Advice technology enables repeatable tasks to be systemised through workflows which creates efficiencies through automation, but also ensures consistent business processes are established and followed, helps improve staff satisfaction and reduces key person risk.”

Efficiencies gained by implementing the right technology free up time for advisers and practice principals to spend on high-value activities which help boost client satisfaction, deepen the client relationship, and acquire and serve new clients effectively – in turn boosting practice profitability.

The Future Ready IX report was produced by Business Health in partnership with Midwinter. You can download the full report on here. To find out about Midwinter’s leading financial advice software AdviceOS, click here or book a demo with the sales team.

The post Why now is the time to invest in your practice appeared first on Midwinter.

Since 2002, Business Health has released a series of whitepapers providing comprehensive insight into the health of the Australian financial advice industry and its preparedness for the future. These papers have become known as the Business Health Future Ready report.

Midwinter Financial Services is proud to have partnered with Business Health as the sponsor for their Future Ready IX report.

The data and insight presented in this report was drawn from the detailed results of over 200 advice businesses that have taken the Business Health HealthCheck since the time the previous report was published in January 2020. While most of these advice businesses offer a holistic range of advice solutions across wealth accumulation, protection and retirement planning, there are also niche, or specialist businesses represented. They include a diverse mix of AFSL holders ranging from the large institutionally aligned groups through to boutique, self-licensed practices.

This enables a truly multifaceted picture of today’s marketplace that is unique in the Australian advice community and exclusive to Business Health.

As a provider of innovative financial advice technology, Midwinter strives to help Australian advice businesses succeed and improve access to professional advice for more Australians. We have sponsored the Business Health Future Ready IX report to offer this valuable insight to advice businesses who are looking for new ways to grow and improve the profitability of their business.

We hope you find the Future Ready IX Report of interest and value, and we look forward to exploring in more detail how we can support your business.

The post Report: Future Ready IX appeared first on Midwinter.

Average profit declined almost 15 per cent from 28.2 per cent to 24.0 per cent year-on-year as practices increased business investment and overhauled fee structures to adapt, according to the Future Ready IX report produced by Business Health in partnership with Midwinter Financial Services. 

This report is based on in-depth business and financial data obtained from more than 200 advice practices through the Business Health HealthCheck business assessment tool. 

Midwinter Chief Commercial Officer Steve Davison said the result is a testament to the resilience of the financial planning sector, which also overcame the challenge of pandemic lockdowns. 

“Good advice businesses, and in particular great advice businesses, have navigated their way through substantial regulatory change and the COVID-19 pandemic, which caused significant market turmoil.  

“They are successfully serving their clients by setting up their businesses with improved processes and technology that will allow them to become more efficient and grow profitability in the future.” 

The advice sector has adapted to changes including the removal of grandfathered remuneration; product and marketing subsidies; new life insurance commission caps; and new educational requirements. 

Business Health owner Rod Bertino said 74% of advice practices still expected to increase business revenue and 64% expected to increase profitability over the next 12 months. 

“The good business owners have been willing to invest in what was needed to remain successful and sustainable. Their operational expenses are up given higher overall licensee costs, including professional indemnity insurance, while they’ve employed more staff to support their client-facing activities.” 

Accessibility of advice remains an issue  

Advisers are increasing their focus on top-tier clients that are willing to pay full-service advice fees. 

The average number of clients per adviser declined slightly from 241 in 2019 to 228 last year, however the number of ‘A’ class clients increased from 79 to 105. 

“This research indicates top tier clients are receiving advice through financial advisers, and our experience shows clients with simple needs increasingly have access to financial advice through their super fund,” Davison said.  

“However, many Australians do not fit in either of these segments: this is a potential opportunity for advice businesses who can find ways to serve these mid-market clients profitably by establishing the right business models and technology.”  

Advice businesses are pivoting to stay ahead  

Advisers are also offering a greater array of services to make up for cuts to traditional income sources. The report found that more than half (55 per cent) of advice practice clients are aged 60-plus and almost half (48 per cent) are retired or no longer working. 

“This aging client base means more practices are offering services they weren’t three or four years ago such as aged care and estate planning,” Bertino said. 

The pandemic also prompted a shift away from the office, with just 37 per cent of businesses conducting almost all client appointments in their own offices compared to 55 per cent in 2020. This move to virtual meetings could in fact help advisers deliver a safer and more enjoyable experience their client base.  

The Business Health Future Ready IX report, which is sponsored by advice technology business Midwinter Financial Services, combines both qualitative and quantitative measures to reveal how advice practices are changing. 

Click here to download the report now.

– ENDS – 

Media Contact 

For media enquiries please contact: 
Deborah Dalziel 
Marketing Manager, Midwinter Financial Services 
ddalziel@midwinter.com.au

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