Blue Chip Issue 80

TECHNOLOGY
positive perception that integration is possible, but does not really
solve the immediate problem for advice businesses, who are then
left with the task of making it happen. This involves engaging with
their other technology providers to gauge or promote appetite,
facilitating at least some of the resultant discussions, uncovering the
inevitable challenges and, unless all parties buy into the universal
industry-offering route, assuming the role of analyst/tester and, of
course, footing the “custom” development bill. It is unsurprising,
then, that most businesses – even those with deep enough pockets
to see it through – tend to give up before they even start.
In some cases, this may be just as well, since the maintenance can
be as complex as the initial development. Not all APIs are created
equal (or necessarily for the purpose an FSP might have in mind) and
the overall quality or depth of integration is considered not only for
its intended use but also in terms of the ongoing effort requirement
towards maintenance and enhancement. Somewhere, someone is
paying for the upkeep and there is not necessarily any guarantee of
perpetual delivery of a service that is so dependent on collaboration.
The enduring integration problem in financial advice. (Source: Linktank annual
advisor technology survey)
It is not a foregone conclusion that all parties are willing to
cooperate in developing integration options for their users. Resource
constraints, demand prioritisation, antiquated back-end technology
and use-case inconsistency are frequently cited factors. Behind the
scenes, though, and in fear of revenue dilution, some vendors still
harbour a passé inclination to deter users from choosing alternative
applications for some activities, instead persistently beating their
saggy old one-stop-shop drums. This despite expansive evidence of
the popularity of integration-friendly platforms across the globe and
the knowledge that younger FSPs are increasingly veering toward
selections of purpose-specific, innovative and easily linked and
de-linked tools. “Plug-and-play” integration options within our local
industry are governed largely by competitive behaviour and driven
almost entirely by vendor proclivity rather than user needs.
The ability for a business to
be able to make best-ofbreed
technology decisions
is spectacularly enhanced
by its integration options.
It is clear that we need more ladders,
and fewer snakes, on the board. Greater
integration potential between industry
software and product providers continues
to present enormous opportunity to
enrich the capability of FSPs, improve
the reputation and value of the industry,
and play a vital role in facilitating
broader consumer access to competent
financial advice. A dose of investment
into development and continuous
enhancement of API options for advisors is
approaching the tipping point of standard
market expectation.
Jen McKay, Director, Linktank
A universe of possibility via integration. (Source: Linktank and The Data Company’s hub model)
www.bluechipdigital.co.za
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