Change in the last 18 months has been rapid, with business and advice moving online in a matter of weeks. Zoom alone grew from around 10 million users in 2019 to 300 million users in April 2020, according to their 2020 Annual Report. And while advisers and brokerages have adapted to the new environment, many would have liked a little more time to prepare.
So, to aid you in getting ready for whatever the next big change might be, we’ve identified five future trends and looked at how these may affect you. That way, you and your brokerage can prepare in good time for future success.
The trend: A virtual, paperless office
After the pandemic, some clients will stay online, some will not, and some will want to meet in person and transact online.
Some of the preference for virtual advice is age dependent. According to the 2021 EY Global Wealth Research Report, millennials are more than two times likely to want virtual advice than baby boomers. But it’s about convenience – and working according to your clients’ preferences, whatever they are.
Where does this leave the bricks and mortar offices? You will have seen one of the big five banks announcing that they are moving to a hybrid model, with some employees working from home permanently, which means a lot less office space and lower costs. It’s worth considering what office model you’d like to use in future.
Prepare your practice
If you decide to go the virtual office route, it will require some planning.
Make sure you have the required technology and connections to run a virtual, paperless office – it’s worth working with an IT expert who can help you set up your systems and ensure they are secure.
Choose partners to work with such as 1Life, who offer virtual services and platforms, such as Vantage. Vantage is 1Life’s financial adviser digital solution and allows you to service both your existing and new clients digitally from FNA to acceptance. It’s quick and easy, with security features such as one-time-pin transactions which allows you to work with your clients without having to be in the same room.
As far as the physical office goes, keep an eye on expenses and do a cost benefit analysis to see if the space is worth it. You can also consider an alternative of shared office space with another business or brokerage and set up a suitable schedule for office use. Consider whether you truly need a physical office – it’s a large capital investment that could easily be avoided.
The trend: Cybercrime
Virtual offices and online data attract cybercriminals. Data breaches exposed 36 billion records in 2020, according to the Varonis 2021 trends report, and 85% of those were due to either hacking, malware or phishing. A reported 95% of breaches are caused by human error, and only 5% of folders are protected, which indicates there is a lot you can do to protect your brokerage and client information.
Prepare your practice
Criminals always look for the easy route – so make it difficult for them to find vulnerabilities in your system, and your chances of being attacked reduce. Simple protection measures can make a big difference, and it’s worth investigating cyberinsurance.
You also need to ensure you and your staff are trained on how to protect data and personal information, and follow safety and protection measures rigidly. This includes everything from password protection to file encryption and anti-virus checks.
If necessary, hire an expert who can assess your systems and ensure they are protected, and also educate you and your staff on how to be cyber savvy.
