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.”
