In the UK alone there are over 12,000 registered Wealth Advisors and Independent Financial Advisors. Some of them work for large organisations, some of them operate as self-employed agents for smaller networks. All of them are directly regulated by the UK Financial bodies that are there to oversee fair play and honesty after laws tightened up following the World-wide financial meltdown.
The resulting restrictions, rules and laws applied to the industry have made it very hard for anyone in the industry to operate without fundamentally embracing a very complex record keeping, administrative and reporting overhead. For example: An IFA that takes commissions from a client directly in return for his advice needs to completely justify what advice was provided, to whom, when as well as a full justification of charges applied against time and effort spent on that particular case.
These reports have to be entered at least once per year and organisations that cannot show that they operated fairly risk fines and in some cases, law suits and damages claims going back several years. In order to ensure compliance and to protect themselves from attacks on all flanks and fronts these organisations keep exacting records of each instruction, conversation and of course every subsequent sale.
An IFA client approached Trivaeo understanding that reams of paperwork collected and subsequently collated was an administrative burden. Yet, buried within it are the keys to providing even sounder 'financial advise' to clients by using the data gathered intelligently.
The end to end process of marketing, lead generation and then follow ups that resulted in client engagements was entirely built around paper based record keeping, compounded by spreadsheets and other tools used by individual IFA members as they preferred. In one case it was found that an 80 page document called a 'Confidential Financial Review' was detailed over many hours, then left in a cabinet; it's value and contents lost to history with only the 'memory' of the IFA able to resurrect it when needed. It offered the business little opportunity to use the data collected intelligently in future.
If a vendor released a new financial product it was impossible to 'match' the benefits of the new product to the 'needs' of the client base from whom the 'facts had been gathered'. Only the memory of the IFA triggered any form of association between the applicability of a product to the needs of each client they serviced.
The company also noted that there was no way to link sales performance of the sales teams against the data the IFA's were collecting. Sales Management couldn't monitor sales performance directly without physical exams of the paperwork or by conducting 'joint visits' to clients to assess the performance.
There was no way to conduct a financial fact finding review with potential clients other than on reams of paper forms as most IFA's don't use centrally orchestrated data systems
Each year the IFA had to submit detailed product data and commissions in the form of "Gabriel Reports" to the regulator. These are complex to compile and often required dedicated administrative teams to complete the tasks necessary
The IFA used multiple pieces of supporting software from different vendors to store other information about clients, their details, attitude to risk (ATR) calculations, capacity for loss (CFL) calculations. The creation of 'evidence' necessary to create the 'letters to justify product selections' is complex and time consuming
Create a solution that manages the entire IFA to client lifecycle. Optimise the collection of data, especially fact-finds conducted with clients for hard facts as well as soft facts. Make the data available for centralised storage, recording, extraction, reporting and be able to mine it effectively at any point in the future.
Ideally, be able to create the ability for the clients themselves to be able to collaborate and view real-time reports of how the products and investments they are using are performing. At the same time improve the sales management process and to review performance against the data collected.
Automate as much as possible the activities required for Gabriel Reporting and for commission payments for Agents and Partners alike
Working with Trivaeo the IFA network developed an end-to-end solution that completely addressed the challenges and the goals required.
The existing Trivaeo Crossroads framework of 65+ applications was orchestrated under a single workflow and business process management application called CLOE, the Client Lifecycle Optmisation Engine and became immediately available for IFA networks and companies to use as a solution to the challenges faced by the industry as a whole and was immediately embraced by the lead IFA network concerned.
The CLOE solution provides the following core functionality to the IFA, out-the-box;
The IFA client proceeded to extend the CLOE solution framework by adding entitlements to use the full Human Reources Management solution
The resulting solution saved thousands of pounds (£) in recurring administrative costs for the practice, allowing administrative staff to refocus on assisting the sales and client facing functions of the business, direcly and positively impacting on the subsequent financial performance of the team.
The Trivaeo CLOE solution framework is the industry's first end-to-end solution for the financial advisors marketplace and may be readily adapted to the individual needs of any IFA.