Tech to up pressure on adviser accountability
The rate of regulatory change is gathering speed in financial services driven by digital platforms, social media, and communications technology, and financial institutions will be more accountable than ever to governments and the public.
Such was the declaration in a Colonial First State (CFS) report, which identified "megatrends" that would influence businesses over the next three to five years.
CFS executive manager of strategy, Gideon Lipman, said digital platforms also encouraged greater customer advocacy across the industry as individuals connected with other customers worldwide.
He said regulation would work both ways, where financial services organisations would gain from engaging with policy makers and regulators to change outcomes that would help customers and foster innovation.
Titled ‘Global Trends: Potential Financial Services Impacts', the report also said advisers should improve efficiency and customer service by using robo-advice, while continuing to maintain relationships with clients.
"Although robo-advice tools might be able to take on certain advisory tasks, people will continue to turn to advisers who they trust for financial guidance and coaching," Lipman said.
"The answer may lie in ‘bionic advice' — a combination of robo-tools and adviser intervention — with advisers using this technology to add value to their business."
In terms of shifting ageing demographics, while Australia faced the challenge of an ageing population, 90 per cent of the world's youth currently lived in developing countries, and they were tech-savvy and well educated.
"Accounting and financial advice businesses now have the chance to tap into skills overseas," Lipman said.
"Some firms are outsourcing administrative tasks, which allows them to focus more time and emerging on their relationships with clients and the value they can deliver."
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