- Survey of 9 technology vendors provides over 6,300 data points to better understand the emerging Hybrid Advice market
- Survey shows significant gaps remain around protection and savings, pre-, at- and post-retirement emerged as existing areas of focus
- No single firm is offering a comprehensive and complementary Hybrid Advice journey to date
- Online Adviser Forum to discuss Hybrid Advice taking place Wednesday 18th October
AdviserSoftware.com, a division of Financial Technology Research Centre (FTRC), has conducted a comprehensive market study into the emerging Hybrid Advice market in 2023 to gain deeper insights into the solutions currently available to advice firms. The research is the largest benchmarking to date of this crucial new area that can enable advisers to serve far more customers economically. It maps current hybrid advice capabilities and the state of technology integration to assess work still needed to provide a seamless advice journey in the future.
Hybrid Advice involves the use of technology, automated processes and human intervention from a financial adviser to support aspects of the client’s journey. It supports the provision of tailored solutions, helping clients make well-informed decisions about their finances to achieve current and future financial goals.
Obtaining over 6,300 data points, ‘The AdviserSoftware.com Hybrid Advice Study 2023’ surveyed 9 technology vendors and assessed 21 areas of each service across pre-retirement, at-and post-retirement, income, mortgage and family protection, and savings. The survey offers unique insight into the current capability of Hybrid Advice propositions and identifies areas which received the most and least investment in technology to date.
The research found that Hybrid Advice solution providers invested the most amount of time and resources in markets such as the pre-, at- and post-retirement, with particular focus being placed on building out the client journey and offering planning solutions for clients.
Income protection, buying a home, mortgage protection, and family protection emerged as some of the areas least evolved to date, needing further development from technology providers to ensure comprehensive advice is available across all areas. This includes protection and savings where the most significant advice gaps remain. Currently, no single provider offers the full Hybrid Advice journey.
The Hybrid Advice market still faces challenges when it comes to ensuring advisers understand exactly what Hybrid Advice solutions can deliver and how they can be used within advice firms to support different client segments and needs. FTRC has worked with a number of advice firms this year to help them understand their Hybrid Advice requirements and assist them with partner selection.
Another consideration is how technology vendors, whilst having delivered some very impressive capabilities, will need to improve the breadth and depth of their offerings if they are to deliver solutions that will address the needs of their prospective clients including advice firms.
Jason Green, Chief Commercial Officer, at AdviserSoftware.com commented:
“Advisers are operating in a dynamic environment where their clients’ needs are bespoke, nuanced, and constantly changing. The tools and capabilities available to advisers need to keep up with these requirements and the holistic use of technology can help them do that. We’re pleased to be able to work with advice firms, offering guidance based on the insights from this survey to help them best make use of Hybrid Advice in a way that empowers their clients.
“Whereas true Robo Advice never really took off, we are already seeing Hybrid Advice models appealing to forward-thinking advice practices. Although it is not a mature technology, the potential is clear as to how this can create more capacity for financial planners, produce propositions that appeal to a wider audience and support the demands of Consumer Duty, enabling clients to make better informed decisions.”
The ‘Evolution of Hybrid Advice’ whitepaper which includes high-level survey findings and related insights on the Hybrid Advice space can be accessed for free at https://www.advisersoftware.com/technology-research-studies/
A series of more detailed analyses for advisers, technology vendors and other financial institutions is also available on a subscription basis. Over the last 12 months, AdviserSoftware.com has worked with both advisers and providers to gain a deep understanding of the Hybrid Advice landscape.
Advisersofware.com now holds over 6,300 data points comparing various Hybrid Advice providers. This places it in a unique position to assist advisers with their partner selection process, help providers understand how their proposition compares with their competitors, and provide knowledge and support to anyone looking to understand more in this space or enter the market.
Ian Plumpton, Chief Operating Officer at financial planning firm, Attivo, said; “We approached FTRC as we were looking to explore Hybrid Advice partners for our business. We had an understanding of what we thought we required, but FTRC helped us broaden our thinking and expand our knowledge in this market.
“Their expertise and detailed understanding of the advice tech market enabled us to work more quickly and efficiently. They played the role of our ‘Critical Friend’ to act as a moderator, external industry voice, and sounding board to help us make detailed and informed decisions.”
AdviserSoftware.com is also hosting a free online forum for advisers on 18th October 2023. The meeting, which is part of their Advice Tech offering, will discuss how this market is evolving and how it might shape advice and servicing propositions in the future. Advisers can register for their free attendance at https://www.advisersoftware.com/advice-tech-forum/
