Digital disruption threatens planning industry

financial planning

28 April 2015
| By Nicholas |
image
image
expand image

An impending digital tsunami threatens the viability of the financial planning industry, if the sector fails to embrace change, a report claims.

The PHAROS/Madison Group's Adapt or die, the impending digital tsunami, white paper warned advice practices that fail to take advantage of digital developments will become irrelevant.

Madison Financial Group general manager, Giulio Russo, said advances in technology presented opportunities for the sector, but could also see the industry go the way of music stores and book chains.

"This is not a new phenomenon," he said. "It has been happening in other industries during the past three decades.

"The fact is — digital disruption is already taking place in the financial services space.

"If we don't adapt to the needs of the growing number of people embracing and expecting to have access to digital solutions, our industry will be left behind."

Russo said research had shown consumers were using digital execution services for financial products, but few were interacting with advisers through digital means or social media.

"A number of global, forward-thinking firms are already developing specialised automated algorithm-based services that are meeting the specific needs of clients who come to them.

"These are the organisations that are adapting and meeting consumer needs and we need to learn the valuable lessons that they are offering us.

"It is a subject that is going to become more and more relevant."

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Completely agree Peter. The definition of 'significant change is circumstances relevant to the scope of the advice' is s...

1 month 2 weeks ago

This verdict highlights something deeply wrong and rotten at the heart of the FSCP. We are witnessing a heavy-handed, op...

1 month 3 weeks ago

Interesting. Would be good to know the details of the StrategyOne deal....

2 months ago

SuperRatings has shared the median estimated return for balanced superannuation funds for the calendar year 2024, finding the year achieved “strong and consistent positiv...

1 week 5 days ago

Original bidder Bain Capital, which saw its first offer rejected in December, has returned with a revised bid for Insignia Financial....

5 days 3 hours ago

A relevant provider has received a written direction from the Financial Services and Credit Panel after a superannuation rollover resulted in tax bill of over $200,000 fo...

4 weeks 1 day ago

TOP PERFORMING FUNDS