Three quarters (75%) of advice firms are servicing more clients than they were three years ago and over half expect their business to grow in 2023, new research from Dynamic Planner has shown.
Dynamic Planner’s Annual Spotlight Report ‘Reaping the productivity dividend: The financial advice market in 2022’ found 88% of advisers say that technology is improving their ability to serve clients. Close to two-thirds of advisers are seeing an increase in new client enquiries through the pandemic and beyond.
The growth in client numbers comes amid a widespread move to more hybrid working, with more than three quarters now delivering most of their advice through hybrid or fully online models.
Dynamic Planner said advice firms remain confident about the future, with 57% expecting their businesses to continue to grow.
Yasmina Siadatan, sales and marketing director at Dynamic Planner, said: “This year’s Spotlight Report paints a picture of a flexible industry that has weathered considerable challenges and emerged stronger.
“It comes at a turbulent time for advisers and their clients: war in Ukraine, an energy crisis, and central banks battling to control the highest inflation in a generation. Meanwhile, advice firms are reckoning with the biggest regulatory overhaul since the Retail Distribution Review.
“And yet the survey finds a buoyant industry facing the future with confidence. The productivity dividend that came from the pandemic looks to be here to stay. Hybrid working models remain in place and, as a result, advisers are looking after increasing numbers of clients. What was gained from this once-in-a-generation technological advance cannot be underestimated, it is enabling financial planning to be accessed by more people than ever.”
The report showed satisfaction levels among advisers are high, with 87% of advisers willing to recommend their career path to others, with women particularly likely to do so.
However, challenges continue for firms, with regulation proving a particularly sore point. The report showed advisers believe they are spending more time on compliance and administration and marrying up multiple legacy systems and integration of technology can be challenging.
The report also looked at the adoption of ESG and found that 73% of advisers expect all funds to have some degree of ESG integration within five years, with the majority viewing sustainability as an opportunity for client engagement. Almost two thirds (64%) of advisers feel they have the right tools and materials they need to make informed choices about sustainability for their clients.
