The absence of efficient client relationship management (CRM) systems and processes will dramatically lower the value of a business.
Brokers who are asked to value a financial planning or accounting practice will typically discount the sale value if the principals don’t have accurate client records sitting on a modern CRM platform. Most buyers understand that this is an essential part of making the transition of clients much easier.
However, despite the rapid pace of technological innovation, many principals are still resisting change or failing to keep pace with the latest technologies. They are not using new mobile technology, such as smart phones, tablets and apps, to stay connected and informed.
Given that technological innovation will only continue in leaps and bounds, this failure could destroy a business over time.
The great leveller
Technology is in fact a great business leveller. It’s much harder for the large institutions to adapt because they have enormous legacy systems and problems. Technology is one area where being small has very distinct advantages. Small businesses can introduce and adapt to new technology and consumer trends far quicker than larger ones.
Businesses that embrace technology commonly experience increased efficiency, reduced costs, better access to new clients, more efficient delivery of information to clients, less paper and an increase in business value.
Financial advisers and accountants should learn how to leverage technology and maximise the benefits of open, electronic connectivity through social media such as Twitter, Facebook, Instagram and LinkedIn. This will enhance and reinforce their CRM activities.
Next generation
The delivery of advice has centred on investment platforms for the last 10 years, but if Aqua II and other technology-related initiatives are successful, they will attract a whole new generation of advisers and clients.
The most successful small businesses are those that employ a technology champion who drives its use and development throughout the business.
Technology is only as good as the information that is put into it and this information is only relevant if it is continuously updated in real time. This information is fundamental in satisfying the new fee disclosure requirements.
Keep it simple
With clients increasingly challenging the value they receive from advisers, it’s critical that advice businesses are efficient and streamlined technology will play a key role. The majority of accounting and advice firms use multiple technology systems, the layers of which increase costs, complications and work flow blockages.
Future technology will combine the business needs of both professions and deliver real time service to the end customer. The real winners will be the end clients of both professions but advisers must be prepared to change.
