Advice firms keen to embrace technology

There is a “strong intent” by advice firms to increase their use of technology and integrate it into their business, according to Adviser Ratings.

These were most likely to be used for online fact-finding, risk profiling, scaled advice and client feedback. Advisers also sought tools which would help clients to visualise their goals and see the impact of various financial scenarios. 

Adviser Ratings said these types of tools would become “even more important” in the current environment as clients grappled with rising interest rates and inflation and the cost of the living crisis.

The firm’s survey of 500 practices found the most-commonly used technology currently was Xplan, used by 39% of firms. This financial advice technology from Iress dominated above other options with the second most-commonly used technology being AdviserLogic from Morningstar which was used by 10% of respondents.

VIEW ALL

View all

“Post-pandemic, we have also seen a growing desire from advisers and clients for client portal tools where data can be exchanged easily during the advice process,” the research firm said.

It also noted the focus on technology by the Quality of Advice Review where reviewer Michelle Levy stated digital advice tools could complement traditional advice as way to ease the accessibility and affordability burden of financial advice. 

As well as this, tools such as ChatGPT were being integrated into industries and becoming more mainstream.