What is straight-through processing and how could it benefit my business?
Straight-through processing (STP) is the electronic sale and servicing of business from consumer, via IFA, to provider. Technology supports many stages of an IFA's business, such as product research, comparative quotes, online transactions, back-office administration and valuations. But often each application must be used in isolation.
Existing and new services are integrating to support all elements of an IFA's business process via a single technology platform. Once this is in place links can be built from this platform to the back-office systems of providers to enable STP. The new systems can support your entire business process from initial customer contact through to policy redemption or maturity. Client data needs to be entered once and it can be used to research, source, transact and administer a product. STP enables the electronic transfer of information both from the IFA to the provider for transactions and back to the IFA for policy servicing.
By automating key sales, servicing and administrative functions throughout the value chain, STP can enable the industry to meet the requirements of the regulator. Automating key admin functions, omitting errors caused by manual re-keying of client data, reduces costs. Client service is improved by reducing the length of time it takes to administer the sale of a policy and by providing up-to-date client or policy information.
It benefits the IFA by improving the service for clients. Potentially it enables electronic new business processing and customer servicing in front of the client. With all client data held in your back-office system you can identify customer needs, use the client data to research, select and purchase the product online, receiving a decision in principle from the provider within minutes.
Ian Noble
