Adaptive innovation a must for advisers: Consultant – ifa

Speaking to ifa, Elixir Consulting founder Sue Viskovic said advisers are increasingly adopting distinctive business models that open up sections of the market that might have been missing out due to the higher costs brought on by compliance and administration.

“I am seeing those who are focusing on younger segments or wealth creators, people with less financial complexity – and they are creating models that are utilising technology and digital engagement much better,” Ms Viskovic told ifa.

“Whilst it might be now more expensive for someone on a low income to access the traditional full financial advice model, there are more models coming to the fore where there’s a combination of digital technology –  not necessarily robo-advice as such – but utilising digital tools better to deliver an offering that is more suited to people at that last stage.”

And while the cost of advice is rising for consumers, Ms Viskovic believes that there’s been a corresponding increase in its overall quality.

“I agree with those who say that the cost of advice is rising for consumers, but I also think that I’m not quite so bearish about that because [what] I also see coming with it is an increase in the quality of engagement, not just the quality of advice,” Ms Viskovic said.

“I think most advisers, certainly the ones that we deal with, have been giving quality advice, but it’s the quality of the full engagement and experience that’s being delivered increasing along with that. Advisers are expanding on their engagement techniques and broadening their discussion to incorporate lifestyle and behavioural factors that will improve the outcomes that their clients enjoy, and have access to more resources that can improve the efficiency of the data gathering process to enable these deeper conversations.”

Ms Viskovic also touched on the impact that the new FASEA standards have had on the industry, saying that they’ve either been welcomed or have “negatively impacted advisers”.

“There’s not a lot of middle ground there,” Ms Viskovic said.

“But the majority of the people we speak with tend to be of the mindset of ‘let’s get on with it’. With greater clarity on the practical implications of how to comply with both the ethical standards and the education requirements, advisers can plan their way forward and get back to doing what they love to do.”

Ms Viskovic will be the MC of the 2020 ifa Business Strategy Day. To book a ticket, click here.