Advisers say lack of integration holding back use of digital solutions

The research from Origo shows that many advisers who want to operate more efficient businesses are forced to take a hybrid approach to using technology, automating part of their advice process – primarily analysis and modelling – but still retaining a very substantial manual element.

Platforum’s recent survey reveals the highest percentage of advisers (17%) cited ‘integration between systems’ as the most significant challenge over other reasons including provider processes (13%), staff training (11%) and security issues (10%).

Anthony Rafferty, managing director of Origo, said: “There is an increasing need within the advisory market to automate processes and use digital solutions, to help create greater efficiencies, deliver an improved service to clients, and to meet clients’ digital expectations across the board.

“Systems integrations serve our industry by reducing costs and delivering data quickly and securely. Hence, rather than just being a “nice to have”, they have become the expected norm for the adviser.

“The current major technological upgrades, or re-platforming exercises, occurring as platforms look to keep pace with technological change – combined with increased sensitivity around client data as a result of MiFID II and GDPR – also have thrown systems integration into the spotlight, as advisers attempt to keep their clients’ information up-to-date amidst the upheaval.

“And the need for speedy, secure connectivity will only increase as the Open Banking and Pensions Dashboard initiatives progress and new entrants join the ranks of the adviser fintech firms with different ways of working.

“There is no doubt that now is the time for the industry to review how it approaches integrations. Multiple bespoke, point-to-point integrations increase risks, costs and complexities for the industry. There is a need for simplification.

“The focus should be on making integrations more efficient, sustainable, less sporadic and more wide-spread - ultimately delivering improved outcomes for the consumers.”