Today more than ever, firms are looking for ways to become more nimble and operationally efficient in an effort to trim expenses, without sacrificing client satisfaction. One of the key business decisions a firm can make is to allow advisors, sales assistants, or other branch office staff assume greater responsibility for initiating operational processes such as general disbursement requests.
The latest study from Moss Adams, “The Art of Efficiency: A Holistic Approach to Operations,” sponsored by iNautix®, outlines the benefits of adopting a field- initiation model versus the traditional home-office model for processing non-transactional requests. The study found that firms that employ the field-initiation model experienced fewer processing challenges, faster processing times, and more satisfaction with their operational efficiencies and people management.
While the trend is moving in this direction, there are still many broker-dealer firms that are hesitant to allow their field representatives to initiate general disbursement requests. These self-imposed impediments hinder efficient workflow processes, slow down processing times and, in some cases, increase error rates. There seems to be an unspoken fear associated with the field-initiation model. But what is there to be afraid of?
It wasn’t that long ago that the industry faced a similar fear with regard to trading. Just a decade ago, advisors had to follow a tedious paper-based process to execute trades on behalf of their clients. Today, the process has been streamlined, and firms and their clients have been reaping the benefits of straight-through trading and processing. If we allow our advisors to execute significant securities purchases, shouldn’t we allow them to place a simple check request? The technology, rules and safeguards that are already in place for trading make field-initiated account disbursement as safe as - or even safer than - trading.
The field-initiation model allows representatives to receive and enter any required information accurately and quickly in the presence of their client, while monitoring the status of the transaction from beginning to end. Removing the need to call the home office for the status of the transaction, means advisors won’t have to enter information multiple times or track down emails and faxes for status updates, thus providing increased transparency and better service to their client. The benefits of the model add up to a priceless result of increased advisor and client satisfaction.
Making a strategic, proactive move to enhance this one operational task can lead to increased profits, decreased costs, and higher productivity while enhancing long-term growth. A cultural shift in field-initiation mentality at your firm is easy to implement and can potentially double efficiencies.
Michael Nesspor
Managing Director, iNautix® Business Consulting