While advisers may be justifiably hesitant to make the move towards scaled advice, Proviso Technologies is prepared for a full-on transition.
That’s why the firm has just made its online scaled advice system – used mainly by larger organisations – available to SMEs and IFAs.
Provisio CEO Cameron O’Sullivan says that hesitation from planners about moving towards scaled advice is understandable, given the current technology that they are working with.
“At the moment an SOA takes about five hours. Advisers know that’s not five hours of value-add,” he said.
Advisers should be using optimisation software, which is a major advance over traditional modelling approaches, but is deceptively simple on the surface, says O’Sullivan. “Optimisation can radically change the way advisers work, and is crucial to enabling faster advice without sacrificing advice quality.”
He says the adviser still determines the most appropriate strategy for the client, but the optimiser models all possible ways the strategy could be implemented. While O’Sullivan estimates that advisers are currently offering 75% complex advice and 25% scaled advice, he’s predicting a complete reversal in those numbers.
Provisio is allowing free access to its software so advisers can demonstrate strategy benefits to clients, but they will need to subscribe if they want to produce an SOA. O’Sullivan says they have already had a lot of interest, particularly among scaled advice-focused firms, but the proof will be in the subscriptions.