The growth of the digital advice market is accelerating, which is primarily attributed to businesses rapidly adopting and investing more in their technological capabilities. This is good news for consumers seeking affordable and easily accessible financial advice. However, it also creates a more competitive landscape for traditional advisers who need to adapt, or risk being left behind.
The 2022 Financial Adviser Survey by FE Fundinfo found that nearly 70% of advisers increased spending with technology, with 81% recognizing opportunities from adopting digital services. At the same time, 41% introduced these tools as part of the support for remote working.
The most popular investments among these digital tools have been client portals (30%), risk Profiling Tools (24%) and Investment Research 23% all of which SJB Global have been adopting for years.
Obstacles
The financial services industry is still facing many barriers despite being in the digital age. For instance, 58% mentioned that there are no integrations between existing products and services as well as implementing cost-effective software to complement their current suite of technologies (50%).
Although many advisers see the benefits of being more digitally connected, many are concerned. Though digital tools offer a number of advantages, there are still some potential threats that come along with them. Security is always a top concern, and advisers need to be aware of the various ways their data could be compromised.
At the same time, advisers should continue to focus on building strong relationships with their clients, as this remains a key differentiator in today’s market.
Ready and Able
The financial sector was perhaps unfairly seen as of late adopters when it comes to digitization, but now we can see that they’re not only recognizing the opportunities presented by a growing range of hardware and software. Advisers are all too ready for these new technologies as there’s been so much investment in them already. Service providers who want their business improved through better efficiency across every aspect will help drive innovation forward!
This growth offers tremendous opportunities for those who are able to take advantage of the benefits of being more digitally connected.
The digital advice market is growing rapidly as businesses of all sizes rapidly adapt and invest more in their technological capabilities. This increased connectivity offers great benefits to both consumers and businesses alike, which is why we’re committed to helping our clients stay ahead of the curve. This means we are constantly searching for better and more efficient ways to help you.
Contact us today to learn more about how we can help you achieve your financial goals.
