Digital innovation will boost advice customers
Digital disruption and innovation in the financial advice industry will see the pool of customers seeking advice increase in the future, Deloitte partner-elect Andy Abeya said.
While only one out of 10 individuals currently has a financial adviser, Abeya believes more customers will see the value in financial advice if digital innovation changes the industry.
He added that while customers will demand digital solutions in the future, it would still not diminish the role of the financial adviser because the overall pool of customers seeking advice would increase.
"Digital will have a role regardless of whether it turns into digital-only through to an adviser still having majority of the interaction," he said.
"In cases where they still have a physical face-to-face interaction with the adviser, the adviser's role will be helping them understand how to make use of the digital tools out there that help them keep better track of their finances."
Customer needs range from those who want to do everything themselves to those who want someone to do everything for them.
"The role of the adviser will depend on where their customers sit along that spectrum," Abeya said.
Whereas digital players currently provide only simple advice, this will gradually change to more complex strategies as technology improves, but this will also result in innovation as to how consumers will pay for advice.
"In some cases, it's a question mark as to whether consumers in a digital-only space will even end up paying for advice," Abeya said.
AUTHOR
Malavika Santhebennur
Recommended for you
Following an extraordinary general meeting today, Dixon Advisory parent company E&P Financial Group’s shareholders have voted on its proposed delisting from the ASX.
While overall financial adviser numbers have dipped below 15,500 this week, Rhombus Advisory is experiencing growth and approaching 500 advisers in its ranks.
Iress’ Xplan continues to dominate the financial planning software market with a multitude of uses, according to Netwealth research, despite newer players battling for a piece of the pie.
ASIC has shared the percentage of breach reports related to financial advice in FY24, noting increased reporting by smaller AFSLs.
