Digitization: What will happen to trustees?
Today, fiduciaries need too much time for administrative work that will be automated in a few years. This is the result of a study by TREUHAND|SUISSE and bexio. But what will the future bring? And how will a fiduciary work in 2025?
"Only digital fiduciaries will survive."
Digitalization is shaking up the fiduciary industry. This is shown by the study conducted by TREUHAND|SUISSE and bexio, a leading provider of web-based business software. For the joint study, 2100 individual and corporate members of the fiduciary association were contacted throughout Switzerland, with around 80 fiduciary firms with approximately 560 employees taking part. The study shows that today 60% of the trustees spend a large part of their working time on administrative work for their clients. One third even need more than half of their time, for example, to enter receipts or post business transactions.
50,000 jobs affected in Switzerland
Such simple administrative tasks will be eliminated in the future, according to a study by Oxford University: The professions of accountant and trustee will be 94% automated. This will affect almost 50,000 people in Switzerland alone.
Trustees are aware of these changes: respondents know that their daily work routine will change in the coming years and therefore indicate that they will spend less time on administrative tasks in 2025 (41% in 2025 vs. 60% today). Also, because of less time spent on administrative work for clients, fiduciaries will have more time to spend advising them in 2025: 46% of fiduciaries plan to spend more than half of their work time advising their clients in just under 10 years. That is 5% more than today. New client acquisition and marketing will also be given more weight in the future compared to today.
Over 90% see big impact of digitalization on fiduciary industry
Addressing digitalization is therefore vital for the survival of fiduciaries. This is also reflected in the study: over 90% of the trustees are convinced that the digital transformation will have a major impact on their industry.
Trustee: Still the important person of trust for the small business owner in the future
This is also a consequence of the high time requirements of administrative work today: In 2016, fiduciaries lack the time to acquire new clients or provide advice: For example, today only just under 60% of respondents monitor their clients' liquidity on a quarterly basis or even less frequently. Yet staying liquid is essential for a healthy SME: 9 out of 10 bankruptcies are due to liquidity problems, as figures from the State Secretariat for Economic Affairs Seco show.
"Fiduciaries have to move with the times," Joël Ben Hamida, Head of Fiduciary at bexio, is convinced. He spoke with more than 500 fiduciaries last year. His conclusion: "The modern fiduciary is the external financial advisor and the sparring partner of the small entrepreneur. And no longer the 'voucher typist' as in the past." And: "Digitalization will be the biggest challenge for fiduciaries in the next ten years. What will remain unchanged is the high-quality consulting service," Beat Strasser, member of the TREUHAND|SUISSE Executive Board, is convinced.
Conclusion of the study by bexio and TREUHAND|SUISSE, summarized by Joël Ben Hamida of bexio: "Only digital fiduciaries will survive".
Source: Bexio
