Timeline has launched an innovative digital solution aimed at solving a problem that costs independent financial advisers (IFAs) hundreds of millions of pounds annually.
The Pension Lab, who partnered with Timeline on this initiative, revealed that inefficiencies in processing the 3.9 million Letters of Authority (LOAs) issued annually cost the financial advice industry a staggering £442 million. The traditional LOA process is burdened with delays, often stretching up to 59 days, and requires outdated practices like wet signatures, frustrating advisers and their clients.
LOAs are essential documents that allow financial advisers to communicate with financial institutions on behalf of their clients, gathering critical information to deliver compliant and personalised advice. However, the current LOA system is predominantly manual, involving excessive paperwork and the need for physical signatures, leading to delays and errors.
The Solution: A Digital Revolution
In response to these challenges, Timeline has partnered with The Pension Lab to introduce a cutting-edge digital solution that automates the LOA process, reducing administrative workloads by up to 80%. This digital transformation allows advisers to create, submit, track, and receive LOAs electronically, complete with automated follow-ups, significantly streamlining the workflow.
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 of 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.”
The Inefficiencies: Key Data Points
- Time Spent: LOAs take between 7 and 59 days to process, with advisers dedicating 30 to 90 minutes per LOA.
- Environmental Impact: Around 2,800 trees need to be planted annually to counterbalance the environmental effects of the current LOA system.
- Volume of Work: On average, 2.4 follow-ups are required for each LOA, with 391,800 wet signatures gathered every year.
- Increased Demand: The introduction of pension dashboards is expected to dramatically increase the volume of LOAs, potentially by eight times.
Timeline’s “Log Your LOA Pain” campaign highlights its commitment to addressing the inefficiencies in LOA management, offering a sustainable, digital alternative. This initiative underscores Timeline’s dedication to driving innovation in the financial advice sector, improving client service and operational efficiency.