In his welcoming address to delegates of its UK Study Tour 2019, Netwealth joint managing director Matt Heine revealed some findings from its most recent AdviceTech Report, which he said would be released in two weeks.
On the technology front, 36 per cent of those surveyed said AI and machine learning will have the greatest impact on financial advice practices in the next five years.
Regtech was also cited as a major impact with 36 per cent of respondents, and was closely followed by robo advice at 34.8 per cent and scaled advice at 34.2 per cent.
Managed accounts (28.6 per cent) and big data (27.7 per cent) were also cited as likely to have a major impact on financial advice in the futures.
“Technology is going to improve every single part of your business. I don’t think anyone can argue with that,” Mr Heine said.
“What was interesting for us though was the type of technologies that advisers are now thinking about. When we first did this report three years ago, AI was so far down the bottom of the list it wasn’t funny. It wasn’t in anyone’s thinking.
“Whereas I think there’s a very good recognition now that AI is going to be leading the charge in pretty much everything we do. Whether you know it or not, it will be sitting in the background and delivering value.”
Mr Heine noted the rising impact of regtech on advice, and remarked that robo-advice in the post-royal commission world has a place in the market, calling on delegates to provide feedback on what it should be doing for advisers in the robo-advice space.
Further, Mr Heine said it was also interesting that managed accounts are getting closer to reaching maturity.
“All the early adopters are well and now truly on the path to managed account implementation and hopefully are seeing the benefits,” he said.
human Advice will be impossible to give as we are not perfect. The new fasea code of conduct also make sit impossible as we no longer can manage a conflict. Conflicts are always presnt and required to be managed. Now under fasea, we cannot advise if we identif a conflict or one could be present. So unless you wish to charge no fees in the future then we cant advise. They keep coming up with stupidy but ive decided the exit door is the best option. Im tired of the stupidity.
Fintech has its place, but after all fintech is based on a client answering questions.Who writes the questions. How far do these questions go. What are the answers and how many types of answers are going to be allowed. What happens if the answer the client really wants to put is not there, then what happens.
So a good Fintech system will guide the client to the outcome that the fintech system wants to achieve. A selection of stilted and styled questions that allows the fintech to reach the desired answer and product they want to sell, not the answer and product that the client wants or needs.
When will ASIC wake up to this sales con by questions.
OK ! So in 5 years, robo advice will be delivering investment and risk advice, just as the final lot of exiting real advisers sail off in 2024. So Matt, does an AI have to meet FASEA requirements. Or the IT nerd designing the software – is he/she ethical ? Or the keyboard warrior regulating the activities of AI. Have you told FASEA – seems a pity to have wasted all that effort.
Hi Peter and Anon – the stats which will be released shortly are the results from our AdviceTech report which is based purely on the survey results from advisers – not our own view. Agree AI has a long way to go and majority of offerings are Machine learning but all believe it is their to support an adviser relationship – Strong theme over, here like Australia,use smart automation tools to free up time for human relationships. Matt Heine
Whose trying to replace it?
Unless its changed a lot in recent years, the vast majority of Australian adults still don’t have a financial planner so it would seem there is plenty of room for both traditional face to face advice and lower cost ‘AI’ advice.
With all due respect the spruikers have totally conned everyone on AI. All you have is dumb machine learning. AI requires “understanding” (dare I say cognitive learning)…try that in 50 years maybe.
What are you trying to sell Matt ?……Face to face normal personal advice cant be replaced , you can try all the very expensive computer systems you like . Sick of RObo’s trying to flog things .