Timeline has announced a major digital innovation aimed at solving a costly issue for independent financial advisers (IFAs), one that amounts to hundreds of millions of pounds annually.
The Pension Lab, in partnership with Timeline, recently revealed that inefficiencies in the processing of the 3.9 million Letters of Authority (LOAs) issued each year result in a staggering £442 million in wasted costs. The traditional LOA process is fraught with delays, sometimes up to 59 days, and outdated methods such as requiring wet signatures, frustrating advisers and their clients alike.
LOAs are critical documents that enable financial advisers to communicate with financial institutions on behalf of their clients and obtain essential information for providing compliant advice. However, the current LOA process remains heavily manual, reliant on paperwork and physical signatures, contributing to significant delays and errors.
The Solution: A New Digital Innovation
To address these challenges, Timeline has collaborated with The Pension Lab to offer a state-of-the-art digital solution that automates the LOA process, reducing the administrative workload by up to 80%. This innovation transforms the traditional, manual LOA workflow into a seamless digital experience, allowing advisers to create, submit, track, and receive LOAs electronically, complete with automated follow-ups.
Abraham Okusanya, CEO of Timeline, said:
“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, shared his experience:
“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 by the Numbers
- Time Required: LOAs can take anywhere from 7 to 59 days to process, with advisers spending 30 to 90 minutes per LOA.
- Environmental Impact: Around 2,800 trees need to be planted every year to offset the environmental cost of the current LOA process.
- Workload: Each LOA requires an average of 2.4 follow-ups, and 391,800 wet signatures are required annually.
- Increasing Demand: The rollout of pension dashboards is expected to dramatically increase LOA volumes, potentially eight-fold.
Timeline’s “Log Your LOA Pain” campaign demonstrates its commitment to addressing LOA inefficiencies and providing a sustainable digital alternative. This initiative highlights the company’s focus on innovation, improving operational efficiency, and enhancing client service in the financial advice sector.
