Advisers and provider businesses are benefiting from digital letters of authority with them seeing “substantial” cost savings on time and resources.
According to Origo, digital LoAs have multiple practical benefits for both advisers and providers.
Antony Rafferty, chief executive of Origo, said: “The impact of the antiquated processing of letters of authority on provider and adviser businesses is well known.
“But as with any business case, what providers need is evidence that when they implement a digital letter of authority service it will give them a range of benefits to make the investment worthwhile.
“The proof of the pudding is in the eating. That can only come from a solution that is being used in the market, so is tried, tested, and trusted, and will be around for the long haul.”
Some of the benefits include improving adviser experience and reducing costs.
According to Origo, up to 50 per cent in cost savings has been reported by providers because through a digital system the time taken to verify and progress requests is significantly reduced.
This allows clients to have a faster and overall better onboarding experience with their advisers, improving advice firm customer satisfaction.
Digital LoAs are also creating improved business flows which Origo said provides advisers with a process that is “faster, more streamlined and easier to use”.
It added: “From the provider perspective, those who improve their processes and deliver a quicker, more efficient and consistent LoA experience, are making doing business with them as easy and cost efficient as possible, in turn achieving much higher levels of customer satisfaction.
“Providers who fall behind in digitalising their services could begin to see that negatively affect their bottom line.”
The digital process also allows providers to give advisers up-to-date information on where the request is in the system so they can keep their clients advised.
While also reducing the number of follow-up calls needed to check the progress of requests, generating time savings both for advisers and providers.
Origo said: “Providers who show they are ahead of the curve in delivering a faster, smoother LoA journey for advice firms, are building valuable brand credibility. Likewise, advice firms are benefitting from being able to deliver a slicker and more cost-efficient client onboarding process.”
According to Origo, advisers and providers are able to significantly reduce their carbon footprint through reduction in the need for paper and postage, helping them in their net zero targets.
It has also said it now has around 5,000 advisers signed to use Unipass Letter of Authority, which incorporates Origo’s identity system.
Rafferty added: “While the LoA is just one process among many, it is part of an industry wide challenge to bring financial services fully into the digital age.
"There is a huge demand among advisers for a reliable, consistent and cost-efficient LoA service. While providers tell us what they need to see is real world results, using a robust and secure technology they can trust to deliver results.
