Processing Letters of Authority (LOA) is a crucial, yet time-consuming, part of financial advice. With an astounding 3.9 million LOAs processed annually*, the financial and environmental costs are considerable, highlighting a critical area for efficiency improvements.
- Understanding the Costs and Time Investment
- The Environmental Impact of LOA Processing
- The Advantages of Outsourcing LOA Chasing
- Digitising LOA Processes for Better Efficiency
- Strategic Benefits of Outsourcing
Understanding the Costs and Time Investment
Every year, the financial industry spends an estimated 8 million working hours handling LOAs, costing around £442 million*. These figures underscore not just the financial burden but also the opportunity cost of time that could be redirected towards more value-adding activities.
The Environmental Impact of LOA Processing
Beyond the economic implications, the traditional LOA process also has a significant environmental impact, generating approximately 56 tonnes of CO2 emissions annually. This environmental cost points to the urgent need for more sustainable practices, including the digitisation of the LOA process.
The Advantages of Outsourcing LOA Chasing
Outsourcing LOA chasing to specialised services can dramatically reduce both the time and cost associated with these processes. Specialised services offer:
Efficiency and Speed: Leveraging expertise and dedicated resources to process LOAs more quickly and accurately. They have the low-down on who deals with what and how to get results quickly and efficiently.
Cost Reduction: You or your team aren’t distracted juggling this tedious, time-consuming task. What’s more, outsourcing means you only pay for the time you use, rather than having to employ or dedicate full time resource.
Sustainability: You can utilise specialised services who have invested in digital processes to reduce paper and your carbon footprint!
Digitising LOA Processes for Better Efficiency
Moving towards digital LOA processes not only reduces the carbon footprint but also enhances the speed and accuracy of information exchange. Digital solutions ensure that staff can manage LOAs more effectively, with real-time updates and less redundancy.
Strategic Benefits of Outsourcing
Outsourcing LOA chasing is not just a tactical move to save costs and time—it’s also a strategic decision that enhances service quality, client satisfaction, and environmental responsibility. By adopting outsourced and digital LOA processing solutions, firms can position themselves as both industry and environmental leaders.
By addressing these critical aspects, financial advice firms can not only improve their operational efficiency but also contribute positively to environmental sustainability, creating a win-win scenario for your business, your clients, and the planet.
*source: The Pension Lab’s White Paper: “What Lies Beneath Letters of Authority”
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