Asset managers and superannuation funds will ramp up their digital advice offerings in 2022 as the reality of financial advisers exiting sets in.
Technology firm Finura predicts the wealth management and super sectors will invest heavily in digital advice, particularly as they lose unadvised investors to do-it-yourself trading platforms.
Pinnacle Investment Management, for example, took a stake in OpenInvest in 2021. Meanwhile, Finura expects Six Park, Stockspot and MapMyPlan to either be acquired or embrace significant investors in 2022.
However, Vanguard's digital advice offering will not make the big splash the industry anticipated it would.
"We still feel they will be a significant player and did not retreat from managing institutional money for the fun of it. We were delighted to see evidence of IFAs partnering with firms like Six Park and MapMyPlan in 2021," Finura said.
Another prediction is the intensification of the platform wars. Finura is confident Netwealth will successfully acquire Praemium by June 2022, despite the latter rejecting the initial offer.
Last year, Finura said the merger and acquisition activity gave clear evidence that platform business models are evolving.
Netwealth's investment in Xeppo is a case in point, as is HUB24's acquisition of Easton and Class.
Interestingly, major cloud providers like Amazon, Google and Microsoft are predicted to make a significant move in wealth management.
Amazon already has strong connections with Iress, as does Google with HUB24. But it's Microsoft that is expected to make a major move.
Ninety-five percent of advice firms use Office 365, Finura said.
"Expect to see strong growth in Microsoft ISV's (Independent Software Vendors) rolling out new productivity tools purpose-built for wealth," the firm said.