How advisers can scale without losing their human touch

For many financial advisers, growth brings a paradox. The more successful a practice becomes, the more complex it gets. New clients, regulatory requirements, technology decisions, investment oversight, succession planning and operational demands all compete for attention. Yet, the one thing clients value most – meaningful advice and trusted relationships – requires time. 

According to Edden Kift, Head of Partner Group, SA at PortfolioMetrix, one of the biggest obstacles preventing advisory firms from reaching their full potential is not a lack of clients or expertise, but the growing number of distractions pulling advisers away from their core purpose. “Ultimately, advisers should be able to focus on the conversations that matter most – conversations with clients and strategic conversations about the future of their businesses,” he says. 

Levelling the playing field

Since its establishment in 2010, PortfolioMetrix has focused exclusively on supporting independent financial advisers. While often classified as a discretionary fund manager (DFM), Kift argues that the firm’s role extends far beyond investment management. “At our core we’re an asset manager, but what we’ve always tried to do is help advisers absorb complexity so they can spend more time where they add the greatest value.”

That philosophy emerged from a recognition that many independent advisers faced a structural disadvantage compared with large financial institutions. While these corporates could rely on substantial resources, extensive product teams and large support structures, smaller independent firms often had to manage every aspect of their businesses themselves.

The founders of PortfolioMetrix saw an opportunity to level the playing field. “They wanted to put the same capability and resourcing into the hands of independent financial advisers who don’t necessarily have large balance sheets behind them,” explains Kift. “The goal was to allow advisers to offer world-class advice supported by a strong investment and technology capability.”

Flexibility without complexity

Central to that approach is the concept of a centralised investment proposition (CIP). Many advisers still manage multiple investment solutions, platforms and fund combinations across their client bases. While this may provide flexibility, it can also create complexity that becomes increasingly difficult to manage as firms grow. Kift believes advisers benefit from creating consistency across their investment offerings.

“If you have hundreds of clients and every one of them has a different investment implementation, you need to maintain a very broad awareness of everything happening across the entire client base,” he says. A centralised investment proposition creates a structured framework where clients are placed into solutions aligned with their risk profiles while maintaining consistency in the underlying investment philosophy.

“The adviser can feel comfortable knowing that whether a client requires a conservative or an aggressive approach, all the necessary parameters have been taken care of,” says Kift. “The focus then becomes determining where that client fits within the overall proposition.” The result is greater efficiency, stronger governance and a more scalable business model.

Importantly, Kift notes that many advisers who outsource investment management are fully capable of managing portfolios themselves. “We work with exceptionally talented advisers who absolutely have the technical skills to do this work. The reality is that they often recognise that specialists can perform certain functions more efficiently and with greater depth.”

Taking technology seriously

Technology has also played a critical role in PortfolioMetrix’s business. Unlike many firms that added technology later, digital tools formed part of the company from inception. Today, the firm’s in-house broader technology focused team is almost as large as its investment team. One of its most distinctive tools is the PMX Financial Personality Assessment designed to help advisers understand how clients think and feel about money. Rather than serving as a traditional risk-profiling questionnaire, it measures behavioural characteristics that can influence investment decision-making. It’s been voted the UK’s best risk-profiling service.

The broader technology ecosystem supports proposal generation, implementation, reporting and ongoing client engagement. However, Kift emphasises that technology should enhance an adviser’s process rather than dictate it. “We don’t say to advisers, ‘Here’s the technology, now fit your business into it.’ The technology exists to support the way they already work.”

While artificial intelligence is undoubtedly transforming financial services, Kift believes its role should be to enhance adviser capacity rather than replace meaningful client engagement. He argues that technology should be used to do administrative work, streamline processes, and eliminate repetitive tasks that don’t require human judgement. “Where AI has real value is when it can absorb work that doesn’t necessarily require humans,” says Kift. “If technology can remove repetitive tasks from someone’s day, that person can spend more time focusing on the things that require proper attention.”

Seeing your business as a whole

Beyond investments and technology, PortfolioMetrix increasingly engages with advisers on broader business challenges. These include succession planning, staff retention, operational scalability and strategic growth. South Africa’s adviser landscape faces a significant demographic challenge, with many practice owners approaching retirement age. Yet, succession planning often receives attention only when retirement is imminent. “The most successful firms are thinking about succession as much as 10 years before a founder or owner exits,” says Kift. “They’re identifying younger advisers, developing talent, and creating transition pathways for the next generation.” 

For advisers looking to grow without sacrificing service quality, the challenge is more about creating the capacity to serve clients than simply finding new clients. And that, says Kift, begins with identifying which activities truly require an adviser’s expertise, and which can be entrusted to specialist partners. “We want advisers to focus on what they do best: helping clients make better financial decisions.”