Timeline Unveils New Digital Letters of Authority to Solve a £442m Issue for Financial Advisers
Timeline has announced a groundbreaking digital addition to its ecosystem, designed to address a costly issue faced by independent financial advisers (IFAs), which amounts to hundreds of millions each year.
The Pension Lab, who has partnered with Timeline on this initiative, revealed that a massive £442 million is lost annually due to inefficiencies in processing the 3.9 million Letters of Authority (LOAs) issued every year. The outdated LOA process is prone to long delays, often stretching up to 59 days, and involves inefficient practices like requiring physical wet signatures, which hinder both advisers and their clients.
LOAs are crucial documents that allow financial advisers to communicate with financial institutions on behalf of their clients and gather the necessary information to offer accurate and compliant advice. However, the traditional LOA system is bogged down by manual paperwork, inconsistent procedures, and the need for physical signatures, all of which contribute to significant delays.
A Digital Solution to the Problem
In response, Timeline has partnered with The Pension Lab to offer a cutting-edge digital solution that automates the LOA process, reducing administrative burdens by as much as 80%. This digital transformation enables advisers to electronically create, submit, track, and receive LOAs, along with automated follow-ups, streamlining the workflow.
Abraham Okusanya, CEO of Timeline, stated:
“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 new system, shared:
“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 Numbers Behind the Inefficiencies
- Time Taken: LOAs currently take between 7 and 59 days to process, with advisers dedicating 30 to 90 minutes per LOA.
- Environmental Impact: Around 2,800 trees are needed each year to counterbalance the environmental footprint of the current LOA process.
- Volume of Work: Each LOA requires 2.4 follow-ups on average, with 391,800 wet signatures collected annually.
- Rising Demand: The introduction of pension dashboards is expected to dramatically increase LOA volumes, potentially eight-fold.
Timeline’s “Log Your LOA Pain” campaign reflects its commitment to resolving LOA inefficiencies, offering a sustainable digital alternative, and continuing to drive innovation in the financial sector, improving both client service and operational effectiveness.