Advisers are feeling increasingly optimistic about the future, with more than three quarters planning to grow their business over the next three to five years, says Fidelity Adviser Solutions.
A study commissioned by the adviser services business, in conjunction with NextWealth, showed a positive shift in advisers’ outlook following a challenging 2023, when the cost of living crisis and higher interest rates impacted adviser confidence.
Fidelity Adviser Solutions said advisers are taking a more resilient and optimistic stance, with 78% planning to grow their business by taking on new clients over the next three to five years. It marks the highest level of growth ambition since the study began in 2020.
In addition, 60% of firms plan to expand by increasing assets from existing clients, while 47% intend to grow by hiring new staff. Almost one in three (29%) advice firms have taken on more clients than usual over the past year.
The study found that demand for advice continues to rise, with 73% of advisers expecting an increase in client demand, up from 51% last year. A number of factors were behind this jump, including heightened awareness of financial planning (60%), market and political uncertainty (41%) and the increasing complexity of personal finance (40%).
However, challenges remain, with more than a third (37%) of firms citing the increasing burden of compliance, while 36% said they are concerned about managing their business in uncertain times.
Separately, the study looked at the impact of artificial intelligence on advice and found that 68% of advisers believe that the technology will positively impact their role, allowing them to focus more on the human aspect of delivering advice.
More than half (53%) see AI as a way to save time and support a larger number of clients, while 50% believe it will help them spend more time on client-facing tasks. A slightly lower proportion (38%) said it will allow them to work more effectively, particularly with clients with lower levels of assets.
Paul Richards, head of distribution at Fidelity Adviser Solutions, said: “These findings underscore the resilience and optimism within the advice industry, especially in the face of the political and economic uncertainty we’ve experienced over the past 12 months. Despite challenges with inflation, volatile markets and shifts in the political landscape, advisers remain bullish about the future with many firms planning to grow by acquiring new clients over the next three to five years.”
Richards said not only are firms actively planning for growth, but they’re also “embracing technological advancements like AI to better serve their clients and streamline operations.”
He added: “This year’s research results reflect an industry well-positioned for growth, demonstrating resilience and adaptability in uncertain times.”
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