Global evidence shows technology supports advisers, not replacing them

In a new opinion piece published on ifa, Financial Simplicity’s Stuart Holdsworth echoed comments made by financial services minister Jane Hume who recently said in a public address that advisers had “nothing to fear from technology”.

“Technology, she conceded, might offer an alternative for people who don’t want to pay for advice, but it wouldn’t replace the 18,000 or so financial advisers practising in this country today,” Mr Holdsworth wrote.

“I couldn’t agree more. I also don’t understand why we’re still debating it.”

Mr Holdsworth wrote that the global evidence shows technological innovation for the most part is supporting advisers, not replacing them.

“I suspect that’s because while smart technology can certainly bring greater efficiency and less risk to investment advice processes, it needs an adviser’s expert understanding of their client’s unique preferences, concerns and goals to work best,” Mr Holdsworth said.

It comes after HUB24 managing director Andrew Alcock said the advice industry can’t help Australian if it doesn’t embrace technology.

“I think there’s definitely an appetite for people to embrace technology, but it has to work. And my view is that this industry is yet to collaborate to really make it work,” Mr Alcock said during an episode of the ifa Show late last year.

“Collaboration’s going to be key.”

Read the full opinion piece from Mr Holdsworth here.

Neil Griffiths

Neil is the Deputy Editor of the wealth titles, including ifa and InvestorDaily.

Neil is also the host of the ifa show podcast.