LONDON, Sept. 18, 2024 (GLOBE NEWSWIRE) -- Timeline has announced a new digital innovation has been added to its financial adviser ecosystem to tackle an issue which costs IFAs hundreds of millions of pounds each year.
The Pension Lab, who have partnered with Timeline on this initiative, previously revealed that a staggering £442 million is wasted annually within the financial advice process due to inefficiencies in processing the 3.9 million Letters of Authority (LOAs) issued each year. The traditionally inefficient LoA process is fraught with frustration, with delays of up to 59 days and archaic requirements, including wet signatures on paper forms which slows down the process for advisers and their clients alike.
LOAs are essential documents that enable financial advisers to communicate with financial institutions on behalf of their clients, gathering vital information to provide compliant, tailored advice. However, the traditionalLOA process is predominantly manual, plagued by excessive paperwork, inconsistent processes, and the need for physical signatures—factors that contribute to significant delays and errors.
In response to these challenges, Timeline has partnered with The Pension Lab to offer a cutting-edge digital solution that automates and streamlines the LOA process, reducing administrative burdens by up to 80%. This innovative integration transforms the traditional LOA workflow into a digital experience, enabling advisers to create, submit, track, and receive LOAs electronically, complete with automated follow-ups.
Abraham Okusanya, CEO of Timeline, commented: “We fully understand the huge frustrations financial advisers face with the current LOA process, which is a huge cost to not only themselves but also the environment, one which is set to increase.
“This is why we’ve delivered a complete digital solution for LOAs in line with our integrated ecosystem built for modern financial advisers.
“Our partnership with The Pension Lab is designed will transform the inefficiencies and environmental impact associated with LOAs, enabling advisers to focus on what they do best—advising their clients.”
Chartered Financial Planner Steven Rowe FPRS of Lucent Financial Planning, who recently trialled the new system, commented: “The LOA thing is the best thing that has ever happened to me.
“I did a test. Got it all back in 4 days and only took 3 minutes. I wouldn’t even have found our existing form in that time.”
Scott Phillips, CEO and founder at The Pension Lab, added: “Timeline is dedicated to empowering financial advisers through cutting-edge technology, data, and methodology, which makes our collaboration a natural fit for delivering a truly innovative digital LoA service.
“Partnering with Timeline, we’ve developed a solution that not only streamlines the LoA process but also aligns with the evolving needs of both advisers and their clients. This innovation is a significant step towards reducing costs, improving efficiency, and enabling advisers to dedicate more time to providing high-quality, tailored advice.”
The Impact of Inefficiencies: the Numbers
- Time Consumed: The time required to complete an LOA ranges from 7 to 59 days, with advisers spending between 30 to 90 minutes per LOA.
- Environmental Cost: Approximately 2,800 trees need to be planted annually to offset the environmental impact of the current LOA process.
- Volume of Work: An average of 2.4 follow-ups are required per LOA, with 391,800 wet signatures needed every year.
- Rising Demand: With the advent of pension dashboards, LOA volumes are expected to increase significantly, potentially eight-fold.
As part of the "Log Your LOA Pain" campaign, Timeline is committed to supporting financial advisers by addressing the inefficiencies of LOA management and providing a sustainable, digital alternative. This initiative reflects their dedication to driving innovation in the financial sector while aligning with their core ethos of enhancing client service and operational efficiency.
