Close to 50% of financial advice firms plan to adopt scaled advice technology within the next two years.
This is a key finding of the latest AdviceTech report from Netwealth, examining 330 advice firms.
According to the report, 47.3% of the firms examined by Netwealth plan to adopt scaled advice technology in the next two years.
Close to one in four (22%) businesses are currently using the technology -up from just 13.1% in 2018.
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"As the customer experience continues to trend towards a more personalised service, it's no surprise that advice firms are embracing scaled advice to help achieve this," Netwealth joint managing director Matt Heine said.
Further, Netwealth found that the most successful advice businesses used technology to focus on growth and improve efficiency.
Heine wrote in the report that the best businesses also focus on what they're good out, and outsource activities like social media management.
They also see the potential in artificial intelligence and robo-advice in client servicing and advice delivery, he said.
"By shining a spotlight on the technology the best businesses adopt, we hope it can provide a guide for advice firms to build an effective AdviceTech stack," Heine said.
The report found that four in five (81.2%) advice firms are likely to invest more in client engagement AdviceTech this financial year than they did in the previous period.
More than half of the advisers surveyed believed that client communications and engagement processes will be the area of advice most impacted by AdviceTech in the next five years.
"Artificial intelligence, RegTech and Robo-advice are all expected to be important technologies to help drive this. They will underpin how the industry evolves," Heine said.
The annual AdviceTech report aims to help financial advice firms implement AdviceTech to enhance their businesses and highlight the benefits of adopting technology.