Financial planners are ill-equipped to meet the demand for online financial advice but there are some positive signs with adviser uptake of social media and technology on the rise.
According to a survey of 600 advisers recently conducted by Zurich Financial Services Australia, adviser use of social media and technology is up but could be much better utilised in their practices and with clients.
Earlier this week, Professional Planner Online ran a news item on Australians increasingly turning to social media for financial advice and the challenges and opportunities involved in marketing financial services to this audience.
“The financial services industry still has a long way to go in terms of being used for online consultation during the decision-making process,” the Core Data survey concluded.
However, Zurich found some cause for optimism with some advisers showing a clear willingness to engage with both existing and prospective clients through social media channels.
When asked about their use of these channels, 36 per cent of advisers told Zurich they would like to start using or increase their use of Facebook, 60 per cent said the same about LinkedIN and 20 per cent about Twitter.
The survey results also showed that while 34 per cent of advisers are using an iPad in their practice, only 21 per cent are using this device with their clients.
“A survey we conducted 12 months ago showed that adviser ownership of iPads was just 10 per cent, so there has clearly been an increase in uptake. However, this appears to be for general use and not as much with clients just yet,” says Marc Fabris, national manager of sales strategies and research at Zurich.
“Advisers are either still getting familiar with these devices before using them with clients or there is a lack of apps that are client-focused or awareness of what is available.”
According to Fabris, the Facebook, LinkedIN and Twitter numbers “clearly demonstrate the willingness of advisers to engage with their clients and prospects through social media channels”.
He says the next step is educating users on how to effectively employ these channels to benefit their business.
Zurich is holding a series of ‘boot camps’ later in the year to help advisers with the basics of technology and social media.
“The boot camps have already proved to be very popular for advisers since we started running them last year,” said Richard Dunkerley, head of marketing for Zurich’s Life and Investments business. “We look forward to supporting the uptake of social media and technology in adviser practices by continuing to hold these sessions in the future.”
I think the burden of compliance is a huge hindrance (or road block at least). I personally am weary about straying too far from the traditional paper questionnaires and modes of communication because I don’t have time to sort out the compliance side of things yet. Social media moves at such a fast pace that it’s impossible to get everything compliance checked before you make it ‘live’. I am interested in becoming more tech aware, but it needs to be a comfortable and natural transition for my clients and my practice.