While it’s a surprising statistic, just 8% of paraplanning is outsourced. One reason for this is that many smaller financial practices use outsourced services to save time, allowing them to concentrate on writing business and marketing.
Larger multi-adviser practices, on the other hand, tend to have in-house paraplanning. That said, using outsourced paraplanning companies could have advantages for larger companies and their in-house team.
Discover five ways an outsourced paraplanning team could benefit your in-house team.
1. Outsourcing provides specialist knowledge
Outsourced paraplanners can have an enviable level of experience and knowledge that many advice companies may struggle to find within their own practice.
For example, at the Paraplanning Hub, we have two Chartered-level managers and other highly experienced staff members who are on hand to answer complex questions or queries.
Best of all, this does not come with the expense of having to pay for an experienced paraplanner with specialist knowledge, who might demand a significant salary.
2. Holiday and illness cover is never an issue
You never need to worry about members of the in-house team taking holidays during a busy period, covering illness, or replacing team members who leave. The outsourced team is always on hand to pick up the workload, ensuring suitability letters are produced without delay no matter how complex the case.
This means you can continue to write the business quickly and efficiently.
3. We safeguard our client’s reputation through regular feedback
As with all clients, we provide regular feedback on the quality of information provided to us and how it might be improved. For example, when fact-finds come to us with information missing we feed this back to the client and help them understand why it’s needed.
Not only does this mean future letters are less likely to be delayed as we chase advisers for missing information, but it can also ensure your recommendations are more robust against a complaint.
4. As a minimum, quality will be as high as an in-house team
Many paraplanners see their role as a career, and therefore take pride in ensuring that their technical knowledge is as up to date as possible. Everyone at the Paraplanning Hub enjoys paraplanning, which is why our understanding around compliance issues is second to none.
This means our suitability letters will always, as a minimum, be on a par with your in-house team’s.
5. Recruiting and keeping paraplanners is not an issue
One problem many financial advice companies face is that paraplanning is all too often seen as an entry point into financial advice. This means there can be a high turnover of staff with in-house teams as paraplanners progress to becoming a financial adviser.
If this happens to you and your business, having an outsourced paraplanning team means you do not have the stress of needing to replace them as quickly as possible. Not only could this mean you avoid hefty recruitment charges, but it could prevent a rushed decision you later regret.
Get in touch
Using a paraplanner for more than suitability reports could help you generate more business while protecting your business’s reputation. If you would like to discuss this further, please contact us online or call on 01472 728 030.
From the Paraplanning Hub team
Paraplanners, whether in-house or outsourced, are a supportive group of professionals who have a constant desire to learn and share their knowledge with others.
It’s no surprise that outsourced paraplanners have pretty much seen it all, from the dreamy one-page annual review to the nail biting 50-page IHT recommendation and everything in between. We can provide a different outlook to your suitability letters and internal processes and share our technical wisdom with your team.
Top-tip: Fusing your in-house team and outsourced paraplanners could provide a unique blend that provides the best of both worlds. It could help great client outcomes as it allows you to utilise a broader spectrum of knowledge within your paraplanning resource.