Dynamic Planner’s CEO Ben Goss believes that change is on the cards in 2025 for a financial planning industry that’s embracing the power of technology as regulation redraws the map.
Key themes expected to play out over the course of 2025 are:
Regulation reshapes the market: In the wake of Consumer Duty, some financial planning firms are finding it uneconomical to service their lower-value clients. But the market abhors a vacuum, and others will step into the gap. There are already firms using technology to deliver advice at scale. The Advice Guidance Boundary Review could turbocharge the transformation, and open up new seams of opportunity.
AI unleashes the power of data: Advice firms capture huge amounts of data in the financial planning process. In recent years, they’ve understood the power of that data, working hard to clean it up and get their systems talking to each other, so they have the information they need at their fingertips. Now, AI can unleash its potential, unlocking efficiencies in the planning and advice process and providing a huge boost to productivity. With time freed up, advisers can focus on their clients – and take on more.
Advice goes mobile: In a world in which we do everything on our phones, the advice process can feel old fashioned and admin heavy. Mobile planning apps will lighten the load. By making use of this channel, firms can not only deepen client relationships and demonstrate their ongoing value between reviews but pre-empt queries and streamline communication. Research conducted by FTRC for Dynamic Planner suggests clients are onboard, with close to two-thirds keen to be able to check their progress via an app.
Alts hit the mainstream: In her first Mansion House speech, the Chancellor announced plans to mobilise private capital to drive sustainable growth in the UK. Infrastructure and other alternatives are opening up to retail investors, providing clients with new potential sources of return, income and diversification. As portfolios become more complex and incorporate more illiquid assets, firms will need more granular risk analysis that will let them fully understand the holdings and their implications.
Advisers play a vital role: A quarter of the world’s population went to the polls in 2024. As we head into 2025, we’re still waiting to find out what the impact of those elections will be. The year starts with Trump’s inauguration, which could have significant repercussions for global trade and more. At home, tax changes from the budget will start to take effect. This uncertain global landscape means advice will count in 2025 and advice firms will play a vital role.
