Financial advisers come in many shapes and sizes with various approaches and value propositions to suit their clients and business goals. Yet, all share typical dynamics. Beyond the need to be profitable enough to survive, they need to:
In other words, they all need to create conditions where business risk is low, costs are controlled, and where there is an ability to scale capacity, revenue and profits.
When managing these dynamics, the key focus should be creating value and minimising waste. For most advisers, there is excessive time spent on compliance and investment management relative to the value their clients perceive they get from their adviser. Therefore, they are consuming unrewarded time costs and throttling the capacity of the business to scale.
The most common and widely adopted approach to making efficiency gains has been embracing technology. Technology has helped, and will continue to, advance the automation of administration and reporting. However, technology adoption is only part of the answer because it does not alone keep pace with compliance cost pressures and does not deliver a competitive advantage.
Adopting managed accounts and specialist portfolio management services is the second area of efficiency potential rapidly gaining traction with advisers. Yet only some are fully realising the potential benefits. The barriers are the narrow mandate selections of many managed account providers and the resulting narrow investment solutions available. For advisers, these limitations lead to SoA/admin complexity, limited FUM allocation and the management of an unwieldy quantity of providers. Effectively, efficiency gains are not realised because managed accounts are being used by advisers like traditional investment wraps or platforms.
A model with more success levers
The Dynamic Asset managed account solution provides advisers with new levers to develop a revised business model. Their solution, developed by advisers for advisers, helps maximise the time advisers have to focus on their core strengths and value – client activity, lead generation, lowering operational costs and minimising compliance risk.
The solution is comprised of:
At a time of rapid change and uncertainty in the economy and financial markets, advisers must use every lever to ensure future business success.
Contact Dynamic Asset to learn how easy it is to apply new levers to your business.
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