Chris Ridd recently sat down with Ron Lesh, Managing Director of BGL to discuss how the financial technology startup has been going in these unusual times. With software sales running out the door, BGL has been in a unique position whereby all staff were assured at the beginning of lockdown that their jobs were secure. This set the tone for things to run smoothly as they transitioned to remote working conditions having already been doing that since 2019. 

Remote working conditions was no new concept for the team at BGL. “Working from home was something we began introducing last year. One of the projects we had planned this year was giving more flexibility to work from home.” Ron believes that giving people back that freedom and time to have more flexibility generates untold benefits to a business and it’s working culture. He also believes that Australian’s will return to a state normalcy that’s reminiscent of times before COVID, asserting that “People need to socialise, and the office is as much a social space as it is a work space.” 

BGL is an excellent case study of how some technology companies during this time are able to navigate the turbulence with great success due to an unimpacted demand for their product. Now more than ever with people working from home we’re realising the strong value in adopting software like BGL’s.

1. When we think of those who have been on the frontline of the COVID-19 pandemic, we imagine the thousands of medical staff across Australia who are helping to save lives despite the risks the virus poses for all. These important figures behind the scenes are experiencing the impacts of the market shock just like we are, and it’s thanks to people like Carolyn Bindon, Director of WealthMed, who are helping navigate these folks through the economic uncertainty. You can watch how WealthMed, an advisory business that works specifically with medical professionals, is helping our doctors and nurses navigate their own wealth worlds during this time of crisis in this week’s myprosperity@home episode here. 

2. Just like the rest of us, WealthMed’s Carolyn Bindon has had to transition her team to work remotely. It’s something we expect to continue – at least in part – even when Australia opens up again. Myprosperity Founder Peter McCarthy was this week interviewed on 2GB radio about how he intends to run a hybrid workforce.

3. The COVID-19 industry shakeup has created a surge in demand for digital services. Moody’s says it’s accelerating existing trends and causing a rethink of old habits, business models, consumer preferences and competitive dynamics. More at Mortgage Business. 

4. Young Australians hit hard. New research from Finder shows that young mortgage holders have been hit hard by the financial fallout from COVID-19 with 26 per cent seeking or planning on seeking assistance from their lender or landlord, compared with 10 per cent of Gen X respondents and 1 per cent of Baby Boomers. More here. 

5. Advice subscription? That’s what Adelaide’s Pitcher Partners has backed as the model that will disrupt the accounting and advisory sector. They’ve launched a fixed monthly rate model that they hope will encourage clients to reach out for more real-time advice, more often. More here.

If anyone understands the close relationship between advisers and technology right now, it’s Rebecca Mihalic, Director of businessDEPOT. She sat down with Chris Ridd recently to discuss how she’s been coping amid the global pandemic and what trends she’s seeing in the advisory space during this time. 

Even though her advisory business had adopted working-from-home conditions and technology long before COVID-19, Rebecca still claims that it’s a new world for her and her team. “I think the flexibility is starting to be enjoyed and people are trying to figure out the balance between work and home life, and how you can have it all in the one building, which takes some thinking outside of the box.”

Rebecca see’s the strong benefits in giving advisers and their clients this flexibility, stating what can be an hour and a half journey to meet and talk with a client can now be a 30 minute conversation thanks to digital technology like Zoom. 

“If you can give people back time in their lives, these are things that really mean alot to not just the accountant or the adviser but the entire team of an office. I really see technology enabling this transition.“ Even Rebecca’s more senior clients have been quick to embrace digital technology into their lives, making giving advice during this time really simple. This rapid digital adoption leads her to believe that these changes are permanent not just to the advisory sector, but to all of our working lives. “I don’t think we’ll ever go back to normal. There will be a level of chance across everything we do.”

Rebecca’s excited by this new world. The prospects that have emerged on the back of the rapid increase in technology adoption has freed up time in her life, whilst also making the way she works with clients more insightful and direct. The way she sees it, it’s an opportune time for advisers to be collaborating with technology, each other and their clients to take the industry in a new, exciting direction. 

When we think of those who have been on the frontline of the COVID-19 pandemic we imagine the thousands of medical staff across Australia who have put themselves forward to help save lives despite the risks the virus poses for all. These important figures behind the scenes are experiencing the impacts of the market shock just like we are, and it’s thanks to people like Carolyn Bindon, Director of WealthMed, who are helping navigate these folks through the economic uncertainty.

WealthMed is an advisory business that works specifically with medical professionals, which makes the current climate particularly interesting for Carolyn and her team of 20. As early news broke of COVID-19 spreading from Asia to Europe, Carolyn had anticipated that this emergency abroad could soon make its way to our shores. Bearing this in mind Carolyn transitioned her staff to remote working conditions much earlier than the rest of Australian businesses. “We felt the need to protect our staff and clients so we began working from home in the very early days.”

With the majority of their clients being on the frontline of this medical crisis, the team at WealthMed began proactivity running webinars to help their clients understand what support was available from the government and having direct conversations to make sure that medical professionals knew what they would be entitled to in this time. “This time has still had it’s challenges as we usually do a lot of seminars and sponsorship activity, but that’s all not on so it’s been an adjustment.”

What also helped prepare Carolyn and her team for this crisis is their early adoption of digital workflows to help engage with clients. They have for some time been ramping up their use of the myprosperity portal with the vision that eventually the portal will be the one-stop place where clients check to receive updates and documents. They’ve noticed a steady increase in the portal’s engagement amongst their clients, as people turn more to digital methods of communication. 

Even though this time has been frantic for Carolyn and her team, she admits that she’s really had time to focus on her own agenda. Thanks to the amazing work of her team, she’s been able to take some time to focus on some things she’s wanted to for a long time, and has found that whilst this time has had its challenges, there’s some serious positives to be taken away.

1. Reform delays. The federal government has announced that it would delay the implementation of reforms recommended by the banking royal commission by six months. Treasurer Josh Frydenberg said the delays are as a result of the significant impacts Coronavirus has had on the sector and to help financial planners focus on “planning for recovery”. 

2. Don’t waste a crisis. That’s what Chris Ridd says in his blog this week – explaining that the advice sector has been through more turmoil over the past 2 years but now is the time to capture opportunities as households need guidance now more than ever before. More here

3. While we’re on helping clients, the AFR this week published a story covering strategies to help rebuild share portfolios in a volatile market. 

4. Super Funds are also teetering as a result of market fluctuations – you can read more on how they’re faring using these top 30 tables as a benchmark. 

5. Is stamp duty reform on the way? NSW and Victoria are considering it as a means to help restructure the state economies as we climb out of COVID-19. More here.