The future of advice is dependent on the integration of hybrid and digital advice into advice propositions, as highlighted in a new white paper from EV. This technology-driven shift needs to be utilized in order to close the advice gap that has been steadily growing.
When discussing hybrid and digital advice, it’s important to focus on its addition to the advice proposition instead of substituting it with traditional advice. In terms of advice delivery, this means operators should not replace face-to-face advice; rather, they should adopt methods that expand the potential of the advice process. Doing this will create a more substantial advice gap closure as investors have more options that are tailored to their individual needs and financial goals.
Incorporating hybrid and digital advice into advice propositions is necessary to make sure that the advice process not only meets investor expectations, but is profitable and efficient as well. That said, EV isn’t advocating for a complete removal of face-to-face advice. Instead, what the new white paper highlights is that the advice process should be enhanced with the use of digital features and technology, as well as offer investors an ability to self-manage their positions and access their portfolios through digital methods.
Partnering with technology providers, creating automated trading systems, and implementing data analytics are all tips provided in the white paper that could help advice operators achieve the perfect balance of advice and digital tools that address investor needs.
In order to make sure that advice propositions address the advice gap, operators should look to enhance their current advice propositions. This means offering more efficient, flexible and cost effective services to a wider range of investors. Making these changes is not only beneficial to advice operators as they will see an increase in customer base, profitability and efficiency; but also investors as new technology and digital advice makes available lower-cost, better tailored advice options.
Ultimately, embracing hybrid and digital advice into advice propositions is necessary for the future of advice if the industry wants to close the growing advice gap. Technology-driven shifts, such as adopting automated trading systems and implementing data analytics, are a great way for advisers to extend the reach of advice propositions and help create a wider range of cost-effective and tailored advice options, without reducing the quality of advice given.