Embrace new technology to improve affordability of advice, says APFA report
13 November 2014
Advisers must consider how they can embrace new technology to be more efficient and bring down the cost of advice, according to a new report from industry experts and the Association of Professional Financial Advisers (APFA).
The new report, sponsored by Cofunds, is part of a series celebrating APFA’s 15th Anniversary. It examines the role of technology in the future of the financial advice profession, arguing that it will play a valuable role providing a more efficient service to customers, bringing down the costs and helping close the ‘advice gap’ of individuals priced out of the sector post-RDR.
Chris Hannant, Director General of APFA, said:
“The ‘advice gap’ we’ve seen post-RDR makes it even more vital that the industry finds ways to make financial advice cheaper and more efficient. Embracing technology is a way for advisers to make sure their clients have the access they expect to the information about their current investments, and their future options.
“People’s lives are changing. Customers are becoming more and familiar with technology and the profession needs to adapt and use it to deliver efficient, high-quality services that are as affordable as possible.”
The report also points to the possibility of automating some financial advice services in the future, as technology develops and the public become more comfortable with using it as part of making financial decisions. Financial advisers, the report argues, will have a key role to play filtering information, presenting relevant options and providing a reassuring human interaction.
David Hobbs, CEO of Cofunds, added:
“The chancellor’s pension reforms will open up significant new planning opportunities for advisers and their clients and puts financial advice at the heart of everyone reaching that stage in their life.
“Technology has a crucial role to play and there is a growing market for advisers to support those who may want to self-direct part of their portfolio – ISAs for example – but delegate other parts, like their pension to a professional. There will always be a place for a strong brand and personal touch.”
The full report is available at http://bit.ly/Report_5
ENDS
