Four in five advice firms are likely to invest more in client engagement AdviceTech this financial year than in the previous one, as well as almost half planning to adopt scaled advice tools in the next 24 months.
Close to one in four businesses already use scaled advice technology, an increase of just 13.1 per cent in 2018, and more advice practices are using social media, SMS, video conferencing and chat bots to engage with clients.
These were the results of Netwealth’s third AdviceTech research report, which also found that more than half of advisers believed that client communications and engagement processes will be the area of advice most impacted by AdviceTech in the next five years.
"With tech companies such as Netflix and Amazon revolutionising the customer experience, it's no surprise that advice firms are also capitalising on technology to keep up with these changing expectations,” Netwealth’s joint managing director, Matt Heine, said on the findings.
"Artificial intelligence, RegTech and Robo-advice are all expected to be important technologies to help drive this. They will underpin how the industry evolves.”
Heine also noted that the move towards scaled advice was part of the shift in customer experience expectations, as consumers want a more personalised service offering.
The survey was based on an examination of the technology usage and trends of over 330 financial advice firms.