Business models everywhere are being adjusted, fine-tuned or even dismantled in response to a world that’s changed immensely in a relatively short time.

With profit margins under pressure, the focus is on efficiency - getting more done for less and finding better ways to attract customers and keep them satisfied.

In this environment, technology comes into its own because it has the potential to improve speed of service and product delivery. Consider the financial services sector and financial advisers in particular.

Internationally, they’re being impacted by consumer-driven issues like transparency of costs and moves away from a dependency on up-front commissions towards recurring fees from clients. Increasingly, financial advisers stand to lose their independent status if they accept payment from providers.

“Against this background,” says Astute FSE Managing Director Biddie Biddulph, “there is recognition that more advisers are needed to improve access to advice so that consumers can be helped out of indebtedness and increase their savings.”

However, because traditional models of product distribution are increasingly viable only when dealing with more affluent clients, progressive product providers and advisory practices are looking for more cost effective and more innovative ways of serving especially their middle market customers.

Central to achieving this, says Biddulph, is optimal use of technology that is capable of bringing financial services to a broad base of clients in a way that is secure, cost effective and which empowers by helping them to plan and transact.

He cites SanlamConnect as an innovation that delivers in an entirely new and affordable way. Clients are able to undertake their own financial planning online, or work though the interactive process on a face-to-face basis with a trained consultant in offices, retail malls and business parks in Cape Town, Johannesburg and Pretoria.

A world first, SanlamConnect offers simple and transparent end-to-end financial planning; focusing on primary needs like retirement, protection and short-term savings.

The unique blend of face-to-face interaction and Internet access allows clients to build relationships with knowledgeable financial consultants, while also having direct access to the same tools and information that the financial consultant has.

Much of this information comes from Astute, the financial services exchange used extensively by financial advisers when undertaking personal financial planning for clients.

SanlamConnect uses an interactive interface with the Astute system for obtaining the client’s current portfolio of products. A unique feature of the SanlamConnect system is the use of electronic signatures by clients and electronic audit information technology.

During SanlamConnect’s process, the client is asked to electronically sign an Astute consent form that facilitates access to the client’s current portfolio of products from various product providers. This functionality is a first in the industry and allows for a completely electronic process, without the need for the client to physically sign any documentation.

Biddulph stated that the process was fully investigated, with the Electronic Communications and Transactions Act of 2002 (“ECT Act”) making specific provision for these kinds of electronic transactions.

“The SanlamConnect system is a prime example of innovation in financial services. It also demonstrates Astute’s ability to adapt to new business and technology requirements in the industry and to capitalise on these by developing technology-based solutions for today’s highly competitive market,” said Biddulph.

Article supplied by Astute FSE

Web: www.financemedia.co.za