Investment Trends’ 2022 Adviser and Advice Technology Report has revealed three key findings including the shift in focus among digital advice providers that are increasingly targeting larger licensees and superannuation funds. This trend is believed to be in response to the recommendations made in the final report of the Quality of Advice Review (QAR), which suggested the return of superannuation funds to advice.
Developed in conjunction with global technology services business Finura Group, the report attributed the proliferation of tech providers in the marketplace to a range of factors, including the need to explore international opportunities.
In response to this finding, Danni Le Grande, head of consulting at Finura, emphasised the significant takeaway from the research, highlighting the vastness of the technology landscape.
“One of the key takeaways from this research is just how vast the technology landscape has become,” she said.
“With so many different products on the market, it’s no wonder decision-making can be such a daunting task for advice practices,” Ms Le Grande added.
Among the growing advice planning software providers catering to Australian financial advisers are a number of global players, which the report said was in part a quest for scale.
Moreover, the report indicated that advisers are divided on whether platforms or planning software should be the primary source of truth for data.
Meanwhile, from the perspective of the technology providers, the distinction between platforms and planning software is becoming increasingly blurred. Notably, investment platforms surveyed in the study have implemented advanced advice technology features that can compete favorably with some “end-to-end” providers.
“It is difficult to see how far this trend will continue. Many of the ‘jobs’ traditionally done by planning software (or advice tech providers) are the ones for which advisers are most interested in seeing investment platforms enhance their capabilities,” commented Investment Trends head of research Dr Irene Guiamatsia.
According to Dr Guiamatsia, digital advice solutions are increasingly focusing on catering to superannuation funds or larger licensees as their primary target users. This finding is significant as it is believed to align with several crucial recommendations made in the Quality of Advice Review final report.
Speaking about it further, Dr Guiamatsia noted the “near perfect congruence” between the recommendations of the report and the digital advice industry’s shift towards targeting larger licensees and superannuation funds.
Investment Trends recently released its 19th Platform Benchmarking and Competitive Analysis Report, which saw HUB24 reclaim the top spot from last year’s leader, Netwealth.
