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Vanguard: Automation is helping advisers hold onto clients

Working-with-tablet-technology-tech-business-700.jpgAdvisers are using more automated technology to spend more time with clients and be more competitive in retaining them, figures show.

The Vanguard 2018 adviser-client survey tracks the use of technology and automation in advice firms.

More than half of the 300 adviser respondents say they automate cash flow projections, fund selection, portfolio management, and asset allocation respectively.

Investment reporting, re-balancing and risk profiling were the most commonly automated services.

Vanguard head of retail sales Neil Cowell says advisers’ biggest competition is fellow financial planners, not pure robo-firms.

He says: “In the near-term, the competitive risk is not going to be from the trendy digital-only start-ups. It’s going to be the adviser across the street that has been using automation to reduce costs, become more efficient, and free their time to focus on the relationships they have with their clients and prospects.”

One third of the 1000 advised client who responded to the survey said they felt high trust and high satisfaction with their adviser.

These clients are three times more likely than those with medium trust and medium satisfaction to invest all of their assets with a single adviser.

Will technologically backward advisers fall out of providers’ good books?

For clients reporting high trust and high satisfaction with their adviser, 61 per cent are unlikely to switch to another.

Just nine per cent of those with medium trust and medium satisfaction say they would not be likely to search for a new adviser.

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