The change within the pensions and employee benefits market is arguably at unprecedented levels. The move from DB to DC, RDR, auto enrolment, pensions freedoms and lifetime ISA’s have all laid the groundwork for a very different landscape moving forward. Potentially offering the next wave of change is the impact of technology, no-more so that than through robo, AI or digital advice solutions.
We have already seen an adjustment in hiring needs within the market, whilst reports such as RBS shedding 550 jobs to be replaced by automated investment advice capabilities suggests the possibility of a significant ‘disrupter’ to the industry - both to the employment trends and also the nature of the services being provided to the market.
What is apparent is that there is a gap in the market that needs to be addressed, through automated solutions or otherwise.
For those with less than c£50,000 to invest, it is well known that there is a lack of accessible advisory services, and that a significant advice gap has now emerged.
The Financial Advice Market Review (FAMR) has made its views known on a number of areas regarding this market arena - not least that new technology could play a major part in driving down costs, and outlining their support for technology’s ability to address this need within the financial advice market.
So, in an arena where financial planning has historically been built on relationships and an understanding of clients’ wants and needs – what does the future hold?
And, with the FAMR report now complete, what are the issues that the market experts are now debating?
To try and address some of these questions, we brought together a number of representatives to provide perspectives drawn from the consulting, asset management, life assurance and regulatory sectors to consider the current and future blend between the human and technological sides of financial advice. The discussions focused upon the challenges facing the robo-advice market at this time and how this market might evolve.