Technology key to reaching 80pc of Aussies without advice
Eighty per cent of Australians are not receiving financial advice because of the failure of traditional advice models, according to Provisio Technology (Provisio).
Adviser software provider Provisio believes the key to making financial advice accessible to a wider Australian population is technology.
“Traditional advice models have failed to reach more than 20 per cent of the population”, says Jye Tucker, chief technology officer at Provisio.
Provisio’s comments followed the release of research from the Financial Planning Association that found financial advice was seen as something for the affluent.
In response, Provisio said more affordable advice would only be possible if technology played a bigger role.
Tucker said, “New technologies will provide [an] opportunity to tap the 80 per cent of the population missing from the advice market, and introduce new levels of affordability into the industry. It is already happening”.
However, he said but that the adoption of technology will not completely irradiate face-to-face advice but target those Australians that are not accessing advice due to cost. He emphasised new technologies will not disrupt traditional advice models, regardless of growth in robo-advisers and scaled advice, but will offer an opportunity to reach the 80 per cent of Australians who do not receive advice.
The viewpoint also aligns with an Investment Trends survey that revealed 52 per cent of 4845 respondents were open to seeing an adviser, but only 40 per cent favoured face-to-face advice delivery when the additional cost from delivery is factored in, with the other 60 per cent open to advice via another media, such as phone or online.
“It’s not a great leap to think that online advice has the opportunity to bring more people into the advice family, allowing the industry as a whole to service well beyond a mere 20 per cent of the population”, Mr Tucker concluded.
AUTHOR
Priya Prakash
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