Tenet CEO Mark Scanlon recently appeared on the popular The Advice Show podcast, in which he discussed some of the issues currently facing UK advisers, including the important role technology plays and what the industry can do to attract younger investors.
Change is Good
The start of the pandemic and subsequent lockdown obviously caused the whole industry to make sudden changes. For example, here at Tenet, we went from never using Microsoft Teams to it literally overnight becoming almost essential. Thankfully, we had already begun to digitise many of our processes and make our system cloud based. One big advantage being it allowed us to continue making payments whilst working remotely. We also offered video call training to advisers regarding how to conduct themselves during video calls, as well as regular video updates.
Whilst the pandemic initially slowed things down, it ultimately allowed many in the industry to bring forward planned changes. The use of video is one such area, with it quickly becoming a valued part of the financial advice process. This does not mean the end of face-to-face meetings, with in-person meetings still important, particularly during initial stages with new clients.
The Importance of Tech
The pandemic has proven the importance of tech. As a group, we have made lots of changes, with the adoption of Intelliflo as our back-office system a few years back giving us the foundation to drive forward. Our inhouse developers continue creating systems that better manage member interactions, including comprehensive oversight of areas such as CPD and file checking.
Tech is also a prerequisite for attracting younger people, simply because they use it and expect it. However, it should not come as a surprise that older generations have adopted new tech so quickly, with many seeing the financial peace of mind it gives them and their clients. For example, Tenet now has five specialist help desks that provide members with expert, impartial advice. Featuring an automated ticketing system, these help desks have slashed our response times, in some instances from hours to just minutes.
Client Peace of Mind
Tenet’s goal remains providing financial peace of mind. This starts with sitting down with a person and learning about their objectives, risk attitude, and capacity for loss. This initial stage is vital as it informs everything we do from there, allowing us to create a coherent plan and detailed recommendations to achieve this.
The turmoil caused by the pandemic has shown us the importance of financial planning and it has been very rewarding to see clients listening to our advice about planning for a rainy day. That rainy day came, and our members were prepared. This perfectly highlights the value of good quality advice and is the financial peace of mind we aim to give members and their clients.
Financial Advice for Everyone
Many people, particularly younger generations, remain wary of financial advice, and the financial industry still suffers from an image problem that needs to be addressed. One of the ways Tenet combats this is by dividing services into specific areas, such as mortgages and pensions, rather than simply talking about ‘wealth’ which can be daunting and off-putting. Simplifying processes and improving convenience are also important, as is using our experience and expertise in the right way. Of course, financial education among young people is an area that needs attention, with most students still having little financial knowledge before leaving school.
Industry consolidation
Despite Covid, there continues to be increased consolidation of advice firms. Two of the biggest reasons for this appear to be the growth in capital aimed at the market thanks to improved consistency and economies of scale, and the increase in retiring advisers. This issue of age is further compounded by the small number of new, young advisers coming through. Whilst there are both pros and cons to such consolidation, ultimately it is helping drive up consistency and quality, with similar consolidation being seen in other industries.
Regulatory landscape
The FCA is driving a culture of doing the right thing and treating customers fairly. This is a good thing to aim for, despite the mechanics of achieving this being initially painful. The issue of customer outcomes was recently highlighted by Google. Asked by a British MP if it would compensate those mis-sold products on its platform, Google was unable to provide an answer. Whilst the company has subsequently stated it doesn’t want unauthorised advertisers on its platform, it highlights the need for stronger government and FCA action. Ultimately, however, the end direction is improving the quality of service for clients. This is something we at Tenet already strive for and so are in complete agreement.