AdviserSoftware.com announces the findings of new research, commissioned by Dynamic Planner, the UK’s leading digital advice platform, examining how the role of technology to cater for consumer needs in financial planning is rapidly changing.
The research of 4,000 UK consumers revealed that demand for digital solutions is on the rise, ideally working in tandem with human interaction.
Half of UK consumers across all income and age groups said they want to receive personalised information electronically from their adviser to track pensions, investments and to access personalised content.
Looking at specific age groups, 3 in 4 18-34 year olds (Gen Z) want to track investments and access financial planning content via an app; of those aged 35-54, 65% would like to have the ability to do this, along with just over a third (35%) of those aged 55 plus. Overall, 61% of the 4,000 consumers surveyed would like to track their pensions, investments and access personalised financial content via a mobile phone app.
The case for hybrid advice remains strong
Despite high demand for technology, the need for human interaction remains strong. Across the age groups an average of 57% still want to speak to a financial adviser to obtain investment advice, and 62% want digital solutions and human interaction to work in tandem. However, alongside in-person meetings with their financial adviser, consumers would like to track their financial information on a mobile phone app, highlighting the complementary value of digital engagement and in-person financial advice. This desire to combine the two increases to 80% of 18–34-year-olds, who are at the start of their accumulation journey.
When looking at income levels, 81% of those earning £60,000+ p.a. want to track their finances via mobile app, rising to 88% for those earning £80,000 p.a. defeating a common misconception that high income earners are asset rich and time poor with limited desire for information beyond the traditional review process.
Commenting on the research findings, Jason Green, Chief Commercial Officer at AdviserSoftware.com said:
“This data shows the increasing appetite from consumers to have multiple ways to access information and digest advice. To meet this rising demand, advice firms will need to be able to offer a high-quality experience that blends the best of human and digital into the client experience.
“Advice businesses can no longer ignore the opportunities that technology can bring across all age and income demographics to give consumers customised advice and meet their obligation to deliver client value.”
Ben Goss, CEO, Dynamic Planner said:
“Younger generations will increasingly set the agenda for how they want to engage with financial advice. Their worlds are mobile and app led and if financial planning can be offered in the way they consume services elsewhere, we will look back on technology as the catalyst that finally engaged and educated young people with investing. The findings in this report show that for our industry, embracing technology is an opportunity that should be ignored at its peril.
“To hold the financial plan in the palm of your hand via a mobile app will increasingly be an expectation across all age groups. With the ability to reduce costs and increase efficiencies for advice firms, technology will enable advisers to serve a larger number of people and the potential to bring a new generation to access high quality, engaging digital financial advice.”
