Distribution Technology, the UK’s leading provider of financial planning and sales software, is the first to market with a proposition management service, which enables advisers to define their different service propositions and record activities against what has been promised clients.
Launched at a live demonstration to key clients and prospects at the Eight Club, Moorgate, London, proposition management is well placed to support advice firms and wealth managers on three levels.
First, advisory firms can easily link their client service propositions to the activities undertaken, making it simple to segment client books and audit work performed on the client’s behalf.
Second, the ability to define pricing models enables the firm to set charges for individual or multiple activities, based on fixed costs, percentages of assets under management or any combination of the two. The system also allows them to determine the degree of flexibility they are prepared to allow their advisers for any fee negotiation.
Finally, senior managers and business owners will find the MI created to be invaluable. The reports generated can track actual service delivery against expectations, which ensures that a robust and compliant customer service process is in place. At the same time, the MI will enable firms to review their pricing models and identify areas to enhance profitability, as part of longer-term strategic developments.
Ben Goss, CEO of Distribution Technology, says: “There is a clear disconnect between the man hours needed on data gathering and what clients actually value, and importantly, are willing to pay for. This was highlighted by recent NMG research, which shows that the service 64 per cent of adviser-using investors are most willing to pay for is a regular review of investments, while 15 per cent would pay for regular updates via a newsletter.* The lesson we took from this was that technology should be reducing the effort and cost of data gathering and analysis. Using smart technology for plan preparation, implementation, compliance, administration and product advice, means advisers can get closer to the stuff that really matters to clients - relationship management. So we developed a proposition that would do exactly that.”
The move to develop a fully integrated service with proposition management functionality that offers advisory firms the first truly practical solution to client segmentation and recording activities, has been warmly welcomed by the adviser community.
Neil Stevens, Joint Managing Director of the SimplyBiz group, says: “As advisers move to Customer Agreed Remuneration they will be well served by these independent solutions that enable them to put at the heart of their business, robust, repeatable and compliant advice processes that enrich the client experience. This approach clearly demonstrates to the client, the value provided by the financial adviser. We see an unstoppable trend in advisers de-coupling their business and processes from all forms of product and platform provider to ensure they are commercially robust and sustainable. Distribution Technology is at the forefront of this transition and their proposition management solution demonstrates the extent to which they understand the needs of the adviser and their commitment to this sector.”
*Source: NMG Investor Census, RDR Special Report May 2011
