Advice firms need technology to survive: FPA

The use of technology will be crucial to the sustainability of advice firms, new research shows.

The Financial Planning Association’s (FPA) recent survey undertaken by CoreData found that just over half of financial advisers surveyed (50.7%) believe advice businesses with outdated technology will not survive.

The FPA argues that the implementation of technology will allow advisers to provide better services in conjunction with giving more flexibility to Australians and how they consume advice.

FPA chief executive Dante De Gori said the FPA is encouraging the government to work with the industry to use digital options for disclosure, consent and transactions through standardised processes and forms.

“The volume of regulatory change that is coming through means that it is becoming virtually impossible to do business as a financial planner using old systems and old ways of operating,” he said.

“There are clear signs that digital advice is gaining momentum due to the rising cost of providing advice and changing consumer behaviour.”

Further to this, the survey reveals that while 88% of advisers believe the pandemic has demonstrated the value of advisers, two thirds of respondents think it will widen the advice gap highlighting the value of employing technology to the advice process.

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Source: Advice firms need technology to survive: FPA | Financial Standard