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Automated advice and the future of financial services

by Heat Recruitment

Intelliflo have published a very interesting white paper  on “Growing Your Financial Advice Business – the Hybrid Model”, this is a big question for the financial services, with managed assets with robo advisers tripling over the last few years, what does this means for your career?

The white paper details how many firm can now longer grow their business through a purely face-to-face model, which is driving firms to consider different solutions. Many firms looking to expand are having to overcome hurdles because of the shortage of qualified advisers, and therefore those advisers with the correct experience and qualification packages cab be increasingly selective. This in itself can prove detrimental to business growth, with an alternative model based on long term training and development to fulfills more senior roles.

The paper suggests a hybrid of automated and traditional face-to-face advice is the model of the future. Long term business growth can be acquired via deeper client relationships who can upgrade their service level from automation to full advice when their wealth or needs have increased.

If this is the future model the paper suggests, the career route for advisers would look very different.

Nick Eatock, Intelliflo’s founder and executive chairman says: “Automation helps to bring advice to a level of customer that has not been able to benefit from it before. It makes advice more economic for both the adviser and the customer. The opportunity lies in giving customers access to an adviser who can help them with more complex issues that automation cannot deal with yet.”

“The advance of technology, driven by client demand, offers an opportunity for a younger generation of advisers to cut their teeth in the industry with clients who want to start out with a light touch, automated approach to investment” states Intelliflo’s report

So the logical first step for an advisers career path may well see trainees or new graduates gaining experience from clients who are moving away from automated services to a more complex package. This would allow the movement of responsibility throughout an advisers career to grow as their experience grows.

Our managing director, Steve Preston, gave the following thoughts on the matter to Money Marketing: “A lot of the work being done by trainee advisers could be done by automation, releasing the trainee to support senior advisers. While automated services may provide an efficient and cost-effective alternative to hiring advisers to handle smaller- net-worth clients or those with simpler demands, the higher-net-worth and more technical clients looking for a really bespoke service will want to be dealt with by a knowledgeable, personable adviser who can handle their situation with a personal touch. There will always be a place for face-to-face advice.”

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