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‘Capacity constraints a result of underinvestment in tech’

Nigel Baker, the founder of Scientiam, has suggested that capacity constraints aren’t exclusively the product of falling adviser numbers and the global skills shortage. Rather, according to Mr. Baker, capacity constraints are also related to inefficient systems and processes, and underinvestment in technology.

In a piece published exclusively by ifa, Mr Baker explained that higher capacity and productivity are attributed to strong organizational structure, specialized roles and greater use of digital technology to drive efficiencies.

“While there is no question that the advice industry must find a way to attract and retain talent in order to help more people, there is no short-term fix,” Mr Baker said, explaining that the answer lies in greater investment in technology.

According to Mr Baker, in order for advisers to capitalize on opportunities borne from the Quality of Advice Review, “capacity will be critical”.

“For the majority of businesses looking to grow, technology will hold the key. Until such a time that adviser numbers can be replenished and materially increased, it may be the only key,” Mr Baker said.

“Every business should be taking steps now to increase their use of technology. Even a small, incremental investment can yield returns”.

To read Mr. Baker’s opinion piece, click bound.

‘Capacity constraints a result of underinvestment in tech’

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Last Updated: 11 January 2023

Published: 12 January 2023

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