Client portals: Revolutionising the adviser proposition

Confident female professional discussing in board room. Group of business colleagues planning together in meeting.

The financial advice industry is undergoing a profound transformation as client portals become an integral part of service offerings. These portals provide a modern and secure means of client interaction, catering to the evolving needs of clients across all generations, including baby boomers.

This blog emphasises the importance of integrating digital technology into the value propositions of Australian financial advisers. It explores four key themes: the current access to client portals, the rise of digital use among baby boomers, the demise of the traditional 9-5 model, and the critical role of cybersecurity in ensuring data protection in the digital era.

Under 45% of clients presently possess a client portal

As technology progresses, financial advisers can improve their practices by incorporating and automating various technological components. However, the degree to which digital acceleration has transpired in some financial advice practices and the extent to which advisers are capitalising on technological opportunities is lower than expected.

Client portals offer convenient access to financial data, investment portfolios, and advisor communication. While these portals have become crucial for many Australian financial advisers, recent research by Investment Trends indicates that fewer than 45% of clients currently have access to a client portal. This statistic emphasises the missed advantages for clients without access to these platforms.

The swift pace of technological advancement has led to an increasing number of individuals seeking convenient and easily accessible solutions for their financial requirements. Client portals have emerged as flexible and convenient means for individuals to obtain financial guidance at any time and from anywhere. Consequently, the fact that under 45% of clients currently possess a client portal underscores the opportunity for numerous advisory firms to integrate client portals into their service proposition. This digital tool can help expand their reach, attract a broader clientele, and deliver personalised financial guidance in a cost-effective and scalable manner.

Rise of Digital Use Among Baby Boomers

Despite common misconceptions, it is baby boomers who are shattering digital stereotypes by embracing client portals to secure their financial wellbeing. Data insights from intelliflo’s evaluation of the personal finance portal reveal that clients in their 50s and 60s are the most active users. Surprisingly, these age groups use the portal nearly twice as often as individuals in their 20s and 30s, dispelling the belief that older clients lack interest or proficiency in digital engagement.

graph shows client portal (PFP) usage by age., peaking between ages 50 and 69.

Internet usage among individuals aged 65 and above has also experienced significant growth, reaching 98% in 2022. This surge in internet use among older Australians highlights their willingness to embrace technology for their financial needs. Financial advisers must acknowledge and cater to their digital needs to effectively serve them.

Advisers who offer client portals can deliver a personalised and accessible experience that meets the expectations of their tech-savvy clientele. By providing user-friendly interfaces, seamless navigation, and tailored financial tools, advisers can bridge the digital gap and provide a superior client experience.

The traditional 9-5 model no longer applies

The COVID-19 pandemic has also brought about rapid changes in the way businesses operate, and the financial advice sector is no exception. One significant shift is the recognition that the traditional 9-5 model no longer applies.

Digital platforms have enabled clients to access financial advice and services at any time that suits them, even beyond regular business hours. This increased accessibility has become prevalent in the post-COVID era, where clients are more inclined to seek remote financial guidance and self-service options.

Client advice portals have revolutionised the client experience by providing personalised service and improving the user journey. Through web applications accessible on smartphones, clients can access personalised financial planning tools and receive tailored recommendations based on their specific needs and goals. This shift towards personalisation is crucial in today’s digital age, where clients have come to expect exceptional digital experiences across various industries. By delivering a user-friendly and intuitive digital interface, financial advisers can enhance the overall user experience.

As technology continues to evolve, it is likely that the financial advice industry will further embrace digital solutions to better serve clients and meet their digital expectations.

Cybersecurity: ensuring data protection in the digital era

Clients of all generations are increasingly concerned about the security and privacy of their financial information. Client portals address these concerns by implementing robust security measures such as encryption, multi-factor authentication, and secure data storage. These measures instill confidence in clients, assuring them that their sensitive data is protected against cyber threats. By prioritising security and privacy, financial advisers can cater to the expectations of clients from different generations and build long-term trust and loyalty.

By embracing client portals, financial advisers can revolutionize their service offerings, provide a seamless and tailored experience to clients across all generations, and strengthen their position in the evolving digital landscape.