The IFA sector could save £71m a year by using technology to provide policy valuations for existing clients, according to figures from the Financial Technology Research Centre.
The research analyses how much more expensive it is for an IFA to provide a quote for their client by phoning and researching it through provider sites compared to doing an electronic valuation.
Providers are working together to offer an electronic system that will give advisers and clients instant access through their IFA's website to all their policy details from one source.
The £71m saving is based on the estimated 36,000 IFAs in the marketplace carrying out two client reviews per week.
The research claims that the average cost of a manual valuation ranges between£3 and £5.38 compared with 47p if it is delivered electronically. Based on 644 valuations a year over 46 working weeks, this would mean a saving of around £1,975 per year per RI.
Eight providers already have the capacity to compile this information in one source but most are looking at offering the service through quote engines such as 1st Software and Key Data.
Towry Law director of strategy Charles Levett-Scrivener says: “I think this is a small estimate. Most IFAs will only complete a holistic portfolio review once a year for a few clients. This service could grow exponentially if the facilities were available to do it more often and more thoroughly.”
Barclays Financial Planning head of commercial development Alan Clark says: “This £71m figure is making the assumption that we would be able to get 80 per cent coverage of the market but we are aiming for 50-60 per cent. This would certainly save a fortune.”