TECHNOLOGY IN YOUR BUSINESS
HOW TO HAVE YOUR CAKE AND EAT IT THANKS TO WEALTHIFY
Dan Giddings Head of Business Development Wealthify
How do you get value from smaller clients ? Did you know that your smaller clients could be costing your firm thousands of pounds every year ? But what ’ s more , according to SimplyBiz research , 91 % of financial advisors fall into the bracket of having unprofitable clients on their books . [ 1 ] There are a few solutions that firms may choose to use here . The first , and perhaps most obvious , is to cut ties with your smaller , unprofitable clients . However , this may damage your relationship with that client , and could even prevent these clients coming back to you if their wealth grows in the future . You may have a client with multiple products , but not all of them are profitable . In this situation , you could choose to keep any valuable products and pass any non-commercially viable ones to another provider . This may allow you to retain your clients and offer a service suitable to their product value , meanwhile you ’ re reducing your operating costs and would only see a small change in your AUM . Another alternative could be placing them in the capable hands of Wealthify . We ’ re a non-advised , online discretionary investment service and winner of Best Investment Provider at the British Bank Awards 2020 . By using Wealthify as a Service , you can offer a technology-focused solution to your smaller customers , while maintaining brand presence through a co-branded platform .
Why use Wealthify as a Service ? In a nutshell , this solution allows you to take an unprofitable client and put them on hold until they reach a point where they ’ re of value to you . Wealthify will handle the day-to-day running of that client , and you can set a profitability threshold where you can re-engage them and offer to take them back on as an advised client . Research from SimplyBiz found that a client typically needs to have £ 114,400 with an adviser to be profitable .[ 1 ] This means that any client under this amount could be losing your firm money , as well as wasting time that could be better spent on larger , more profitable clients . The good news is that there ’ s no cost for advisers to use Wealthify as a Service , as the clients pay Wealthify ’ s affordable management fees , making this a highly cost-effective solution .
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