Last Updated on: 17th September 2024, 05:29 pm
Timeline has revealed a cutting-edge digital solution aimed at tackling a problem that costs independent financial advisers (IFAs) hundreds of millions of pounds each year.
The Pension Lab, who has collaborated with Timeline on this initiative, highlighted that inefficiencies in the processing of the 3.9 million Letters of Authority (LOAs) issued annually waste a massive £442 million. The traditional LOA process is slow, with delays as long as 59 days, and requires outdated steps such as wet signatures, creating significant frustration for advisers and their clients.
LOAs are critical documents that allow financial advisers to obtain necessary information from financial institutions on behalf of their clients, ensuring they provide accurate and compliant advice. However, the current LOA process is largely manual, involving extensive paperwork and inconsistent procedures, which often result in delays and errors.
A Digital Answer to the Problem
In response, Timeline has joined forces with The Pension Lab to launch a digital solution that automates and optimises the LOA process, cutting administrative time by up to 80%. This new system transforms the LOA workflow into a streamlined digital experience, allowing advisers to create, submit, track, and receive LOAs electronically, complete with automated follow-up functionality.
Abraham Okusanya, CEO of Timeline, remarked:
“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.”
Steven Rowe FPRS, Chartered Financial Planner at Lucent Financial Planning, who trialled the 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 of The Pension Lab, noted:
“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.”
The Impact of the Inefficiencies: By the Numbers
- Time: LOAs can take between 7 and 59 days to complete, with advisers spending between 30 and 90 minutes per LOA.
- Environmental Cost: Approximately 2,800 trees are required each year to offset the environmental impact of the current LOA system.
- Volume: An average of 2.4 follow-ups are needed for each LOA, with 391,800 wet signatures required every year.
- Growing Demand: With the introduction of pension dashboards, the volume of LOAs is expected to rise dramatically, potentially by eight times.
Through its “Log Your LOA Pain” campaign, Timeline is focused on addressing the inefficiencies in LOA management and providing a sustainable digital alternative. This initiative showcases the company’s commitment to driving innovation in the financial sector and improving operational efficiency.
