Effects of COVID-19 to shape advice industry ‘for many years to come’

Now almost three years since the pandemic and resulting lockdowns began, Ignition Asia-Pacific head Craig Keary said there are signs that the year ahead will bring good opportunities and potential for both the financial services industry and advisers.

“Many of these tailwinds have arisen directly from the COVID-19 pandemic and will shape the industry for many years to come,” Mr Keary said.

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Some of the trends identified include the accelerated adoption of technology within the sector, with Mr Keary saying Ignition has found that companies that have implemented a digital advice model are experiencing “significant reductions in organisational operating overheads and are servicing more customers while reducing advice delivery times”.

“The COVID-19 pandemic triggered an increase in the take-up of technology by both businesses and individuals, and it is happening even faster than many expected,” Mr Keary said.

“We have already reached the point where doing nothing is no longer an option. Organisations – whether financial planning firms or large institutions – that fail to implement appropriate digital offerings will struggle to remain relevant.”

Mr Keary added that the need for financial advice has also accelerated due to the impacts the pandemic has had on the mental and financial wellbeing of society.

“…research suggests that one in four people are under financial stress as a result of COVID,” he said.

“Digital advice solutions allow institutions to deliver financial advice at scale and help their customers achieve a more stable and secure financial future.”