Technology helps independent intermediaries weather tough times
Virtually all SME's (small and medium businesses) are facing challenging times and struggling to keep their heads above water. This is particularly true for independent financial services intermediaries.
In addition to the economic downturn, intermediaries have to cope with an increased administrative burden and associated increases in operating costs brought about by onerous compliance legislation and greater competition from non-traditional product distribution channels such as direct selling.
Historically, many intermediaries relied on personal relationships with their clients and business was frequently conducted via a handshake. Often times, administration and record keeping in intermediaries'' businesses consisted of old-fashioned paper files to which they seldom had to refer.
Compliance legislation has not only impacted on the way in which business is transacted, ie. by slowing it down significantly, but it's also placed much more onerous demands on intermediaries from an administrative and record keeping perspective in terms of what's needed to satisfy legislative compliance requirements.
Independent intermediaries also face increasing competition - particularly in the domestic insurance market - from companies dealing direct with consumers and via non-traditional channels such as retailers. Independent intermediaries need to run their businesses in such a way that they are differentiated from their competitors and make sure their clients clearly understand their unique value proposition. One of the most successful and effective ways to achieve this is to harness the power of technology.
Predicting the current tough working climate within which intermediaries now find themselves operating, a group of intermediaries got together in 2000 and invested in the development of a customised office management and electronic workflow system called fspOFFICE
fspOFFICE has been shown to reduce costs considerably, increase efficiency and make intermediary practices more profitable.
The system helps intermediaries automate processes; operate a paperless office and improve the quality and frequency of communication to their clients - all the while keeping control of the quality of work emanating from their offices, even from remote locations.
Although similar products have been available to corporate enterprises for a while, now for the first time, the purchase of such a system, via the introduction of fspOFFICE, is affordable - even for those intermediaries practising independently. An equally beneficial attribute of the product is the fact that it is web-based so no installation is required and the system can be operational within a few hours. New users are brought up to speed through specialised training programmes. In the major urban centres ie. Johannesburg, Pretoria, Cape Town and Durban, users are shown how to use fspOFFICE at their own premises. Training videos are available to assist those located in rural areas.
In order to support the marketing function of this solution to intermediaries, fspOFFICE has enlisted the help of Ben Rossouw, the recently retired CEO of the FIA (Financial Intermediaries Association). Rossouw, who brings with him years of industry experience and an understanding of the independent intermediary industry, has come out of retirement to assist fspOFFICE.
"Prior to my retirement, I became acutely aware of the challenges facing smaller independent intermediaries and because I am convinced that they play such a valuable role in serving consumers, I wanted to be part of the accelerated rollout of this product as I know it will go a long way towards ensuring the sustainability of an intermediary's business."
