Bloated advice tech market correction touted for 2022

Small providers in the advice technology space are set to merge or fall by the wayside in the year ahead, with industry dynamic likely to marginalise niche players that don’t have a decent foothold in the market.

As heightened education standards, the Royal Commission and regulatory pressures have cut a swathe through the advice industry, the addressable market has shrunk 30 per cent to below 18,000 licensed advisers.

While the investment platform space has posted significant growth driven by contemporary players like Netwealth and HUB24, and the digital advice space gained traction through outfits like SixPark and MapMyPlan, small players of advice customer relationship management system tools have found themselves competing on increasingly tougher terms.

According to Pete Worn, joint managing director at advice technology consultancy Finura Group, the pressure on these providers will reach a tipping point over the next 12 months.

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Source: Bloated advice tech market correction touted for 2022 – Professional Planner