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Advisers sceptical of the role of technology in closing advice gap 

  • Cash flow modelling found to be the most important adviser technology 
  • Ease of use and onboarding the adviser priorities on provider platforms

New research from VitalityInvest has found almost half (44%) of advisers do not believe technology can play a role in helping to close the advice gap - the gap between those with and without access to affordable financial advice. 

In a poll of 207 advisers, the research revealed 29% of advisers feel cashflow modelling is the tool that could make the most difference, suggesting there are fans of this generally well-regarded adviser software. The robo-advice or self-service route was unsurprisingly less popular, endorsed by just 10% of those advisers surveyed as having a role to play in closing the advice gap.

In a follow-up question on how they use technology, advisers were asked ‘What’s most important to you when using a provider pension portal?’ Answers to this question were more mixed as 32% highlighted an ‘intuitive user-friendly design’ as the top requirement, followed by ‘Ease of onboarding/transferring clients’ at 26%. ‘Speed of service’ was less important at just 12%, suggesting that quality is the priority.  

Mark Dennison at LightBlueUK says: “Clearly many advisers see the full-scale application of technology as a potential threat to their existing business models. Technology can help advisers deliver more profitable services to more clients, including the next generation of investors, but there is some way to go before the wider adviser community embrace this opportunity for their business.” 

Justin Taurog, Deputy CEO of VitalityInvest, said: “The right technology has the potential to significantly streamline advisers’ administrative processes, freeing up time for them to focus on the areas where they can add most value – namely offering bespoke, relevant advice. Building a platform that does the basics well is what we believe is key. This backs up our own experience and our VitalityInvest platform has received excellent feedback from advisers on the speed and simplicity of ISA and Pension transfers.”