TECHNOLOGY IN YOUR BUSINESS
HOW WILL TECHNOLOGY AFFECT THE ADVISER MARKET IN 2022 ?
Nick Eatock CEO intelliflo
The last two years have been challenging for the advice profession , to say the least . Firms have battled to operate as usual through periods of uncertainty and with massive restrictions on our normal way of doing things . The advisers and paraplanners we deal with have made huge efforts to adjust processes to continue to deliver a quality service to all clients . Technology has been at the heart of these new ways of working and I believe that this will continue as we progress into 2022 .
The growth of hybrid advice There has been a great deal of talk in recent years about the rise of robo but claims of it overtaking traditional advice have so far proved unfounded . According to the FCA ’ s Evaluation of the impact of the Retail Distribution Review and the Financial Advice Market Review , only 1.3 % of UK adults used an automated online investment or pension service in 2020 1 . However , we predict that a legacy of the pandemic will be that offering a combination of human and automated advice becomes more commonplace . The cost of delivering advice has been rising for some time , and while using technology to deliver business efficiencies and cut costs is not new , the pandemic has significantly accelerated the trend . Working from home forced advisers and paraplanners to use technology to effectively serve their clients from a distance . Improvements that were on the back burner suddenly became a priority as time-consuming paper-based processes and manual workarounds became impossible when working remotely . At the same time , the crisis has made us all far more comfortable interacting online . According to the Lloyds Consumer Digital Index 2 , 2021 saw a major uplift in digital activity , with people spending 11 % more time online than in 2020 , and the over 60s in particular become more digitally engaged . This new digital awareness has given people the opportunity to reconsider the type of services they want . Although many will still favour a holistic advice service with in-person meetings , some may prefer to continue online , especially if there ’ s a cost-saving . Boring Money found 40 % of clients would move from traditional face-to-face advice to a virtual set-up if it meant they would pay a lower fee 3 . Covid has also impacted people ’ s finances , for both good and bad , with young adults particularly adversely affected . This may explain why younger people increasingly recognise the benefits
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