According to the latest Investment Trends Adviser Technology Needs Report, the number of financial advisers in Australia has continued to trend downwards in recent years, citing the May 2023 Financial Advisers Register (FAR) figure of 15,700 advisers.
In conjunction with this, the average number of active clients per adviser has risen to 120, which has increased from 113 a year ago.
“The average number of clients serviced by any single adviser appears to be (slowly but surely) approaching Dunbar’s cognitive limit,” said Dr Irene Guiamatsia, head of research at Investment Trends.
“This renders considerations of scale, digital engagement, and the broader role of technology more pertinent than ever.”
The report also found that advisers are embracing technology at an ever-increasing pace, with more advisers than ever satisfied with the tools to which they currently have access. There are also many willing to pay extra for access to tools, the report said, particularly those related to retirement planning (32 per cent) and cash flow modelling (31 per cent).
“There is no subsiding in the interest advisers express for seamless data transfers between the various systems they use,” said Dr Guiamatsia.
“While the focus remains on traffic between planning software and investment platforms, there is also substantial demand for integrations with bank accounts, trading tools, and appointment scheduling software – all of which can support advisers in meeting this growing client demand.”
Investment Trends added that in terms of platforms used, the past year has seen advisers consolidate their tech stack. According to the report, 43 per cent of advisers now only use two platforms (up from 32 per cent in 2022).
It also found that advisers said good online functionality and low cost were the features they most paid attention to when assessing suitable platform options.
“Despite the consolidation that has occurred, 12 per cent of advisers remain open minded about alternative platform solutions,” said Dr Guiamatsia.
“Platform providers therefore have every interest in seeking to better understand what advisers are looking for and offer an appropriate solution that’s going to best help them, help their clients.”
For the first time, the report also looked at advisers’ self-assessment of how well their practice prepared for cyber incidents, as well as potential applications for generative AI tools such as ChatGPT. Advisers were mostly welcoming of generative AI tools, with 11 per cent expecting a “very positive” impact and another 44 per cent expecting a “positive” impact.
“Advisers with a positive outlook of the role of AI see quick wins in the areas of research/modelling, data analytics, reporting, but also cyber security. These are all areas mentioned to a much greater degree than digital advice is,” added Dr Guiamatsia.
We’re AT Dunbar’s limit now (150).
120 clients + colleagues + family + friends, etc.
Oh wait, maybe that’s why I have so few friends or much to do with family… too many clients LOL!
The red tape really does help clients, make their lives better.
This used to be such an interesting profession – I managed 300 clients at peak. Now, it’s just a chore. File notes, ROA, SOA, FDS, opt-in, opt-out, do the hokey pokey… and halve my book.
and what did you do to “manage 300 clients”? Did you actually see them or did you just collect the commissions and asset based fees?
Anon, are you suggesting that all advice should be delivered via a fee specifically agreed to by the actual member/client receiving the advice, prior to the advice and that advice should be in the best interests of the member receiving the advice – perhaps you should contact Michelle Levy?
So your against the “Good Advice” concept being recommended by Michelle Levy?
Seriously ?
You poor thing. Maybe you should employ an advisor associate or two…
I don’t “manage” my clients, I deeply engage them and expertly and proactively and advise them and with a clone I couldn’t do that to a professional level with a book of 300 clients who genuinely need and benefit from quality advice.
….and ” twindle ” they will.
Watch for adviser numbers to fall to 10,000 by the end of 2025-6.
Back in the 80s, I had 800 clients as a National Mutual agent. Boy how times have changed.
How many got any service?
800
They probably all got some service, but probably none were expertly and broadly advised beyond whatever they saw as their most immediate need. It blows my mind that (some) older advisers STILL don’t see the difference, nor provide anything any differently to how they did back then!
Fast forward Old Man and AMP owns NatMut who would have thought…!
get rid of all the red tape and let us service a lot more
what will the bureaucrats do if there’s less red tape?
They wont have a job and will end up where they deserve to be, cleaning toilets!