Welcome to your new paraplanner

I work 24/7, 365 days a year without a salary. I communicate with natural voice and can do any financial planning calculation on request, as well as gathering client information and doing product research. I can even implement insurance applications. I remember everything and am not intrusive, only responding to verbal requests directed at me. Otherwise, I sit and listen.

Financial planning today is a slow, expensive and unprofitable business. The Hayne commission has left the industry stripped of lucrative commissions and burdened with onerous compliance and education requirements. Research conducted by KPMG and commissioned by the Financial Services Council found the average cost of providing comprehensive financial planning advice is $5,335 a client, while the average cost charged was $3,660.

It can take weeks or even months before a comprehensive statement of advice is ready. The delay is because the process is so “klunky”.

Firstly, the client completes a paper fact find, often ticking a few boxes to identify financial planning goals.

Then, the fact find is given to a paraplanner (without much or any analysis), who adds it to the pile of fact finds waiting to be processed.

Eventually, the fact find gets its turn and the paraplanner types the client details into financial planning software. This venerable tool (usually around 20 years old) spews out a 50 page plus collection of words that is unintelligible to most people.

Lastly, this document is sent to the adviser who sets up a meeting to present it. The adviser probably sticks to the summary and it’s a marvel they can sell it for so much money and retain happy clients, but somehow, they do.

A digital assistant would allow the adviser to analyse data as the client supplies it, investigate strategies and products and make recommendations in one session. If the session is videoed, a comprehensive record of the advice is created which can be the legal advice instrument. It doesn’t have to be in writing. It also provides valuable “file notes” if compliance does a review. We think it can reduce adviser time/costs by over 60%.

Brave new world. Finchat’s adviser assistant is currently going through Amazon’s certification process.