As the value clients place on trust and communication becomes more important than fees, advisers will need to find new ways to add value to their practices, according to Vanguard.
The company told roadshow delegates that practices can “maximise the value-add” they provide by embracing new technology, with Vanguard head of portfolio construction Francis Kinniry adding that technology will never replace the value of human interaction, but will help advisers support clients.
“For today’s financial adviser, trust and communication outrank performance and fees, but practitioners can deliver all of the above if they concentrate their efforts on the aspects in which they have a competitive edge,” Mr Kinniry said.
“There are three main elements advisers can consider to drive positive change and adapt to this new world – broadening out the service offer, deepening client relationships and embracing new technologies. Deepening relationships takes time.
“To make time, embracing technology and outsourcing investment solutions are key, as these aspects have become largely commoditised.”
Vanguard also shared the results of a recent survey into the evolution of advice technology, which found 90 per cent of advisers see technological advancement as an opportunity for their businesses.
The company’s Australian head of intermediary, Rebecca Pope, said the results were a positive sign.
“We were pleased to see the advisers that we work with are optimistic in the face of a changing landscape for their practices, and embracing the opportunities that new technology can bring,” she said.
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