Retirement advice is the leading area of focus for hybrid advice solution providers, a new market study by AdviserSoftware.com has revealed.
The report, which surveyed nine technology vendors and obtained over 6,300 data points, assessed 21 areas of each service across retirement, income, mortgage and family protection and savings.
The research found that hybrid advice solution providers invested the most amount of time and resources in markets such as the pre-, at- and post- retirement, with particular focus being placed on building out the client journey and offering planning solutions for clients.
In contrast, income protection, buying a home, mortgage protection and family protection emerged as some of the areas least evolved to date, needing further development from technology providers to ensure advice is available across all areas. This includes protection and savings where the biggest advice gaps remain.
According to AdviserSoftware.com, the hybrid market still faces challenges when it comes to ensuring advisers understand exactly what hybrid advice solutions can deliver and how they can be used within advice firms to support different client segments and needs.
Technology vendors will also need to improve the breadth and depth of their offerings if they are to deliver solutions that address the needs of their prospective clients, including advice firms.
Jason Green, chief commercial officer at AdviserSoftware.com, said: “Advisers are operating in a dynamic environment where their clients’ needs are bespoke, nuanced, and constantly changing. The tools and capabilities available to advisers need to keep up with these requirements and the holistic use of technology can help them do that. We’re pleased to be able to work with advice firms, offering guidance based on the insights from this survey to help them best make use of Hybrid Advice in a way that empowers their clients.
“Whereas true robo advice never really took off, we are already seeing hybrid advice models appealing to forward-thinking advice practices. Although it is not a mature technology, the potential is clear as to how this can create more capacity for financial planners, produce propositions that appeal to a wider audience and support the demands of Consumer Duty, enabling clients to make better informed decisions.”
