AdviserSoftware.com, part of the Financial Technology Research Centre (FTRC), has released a comprehensive study into the emerging Hybrid Advice market for 2023.
The research is hailed as the largest benchmark of this new domain, which has the potential to enable advisers to serve a broader range of customers efficiently.
The study maps the current state of hybrid advice capabilities and assesses the extent of technology integration, highlighting areas that need further refinement for a seamless advice journey in the future.
Hybrid Advice combines technology, automated processes, and human insights from financial advisers to guide parts of the client’s journey.
The approach aims to provide customised solutions, assisting clients in making informed financial decisions to reach their present and future financial aspirations.
Gathering over 6,300 data points, the ‘AdviserSoftware.com Hybrid Advice Study 2023’ surveyed nine technology vendors.
It evaluated 21 service sectors across various stages of retirement, income, mortgages, family protection, and savings.
This study offers a distinctive perspective on the present capabilities of Hybrid Advice models and pinpoints areas that have seen varying levels of technological investment.
The report indicates that the most considerable investment from Hybrid Advice solution providers is in areas like pre-, at- and post-retirement. Focus has been on developing the client journey and offering tailored planning solutions.
However, areas like income protection, home buying, mortgage protection, and family protection require further technological development. Significant advice gaps, especially in protection and savings, were identified. Presently, no single provider offers a complete Hybrid Advice journey.
Jason Green, chief commercial officer at AdviserSoftware.com, said: “Advisers are navigating a dynamic environment. The tools available to them need to evolve with client needs, and technology can play a pivotal role. We’re committed to helping advice firms leverage insights from this survey to effectively use Hybrid Advice to empower their clients. While Robo Advice didn’t gain traction, Hybrid Advice models are appealing to progressive advice practices.”
Additionally, AdviserSoftware.com will host a free online forum for advisers on 18th October 2023. The event, part of their Advice Tech initiative, will explore the market’s evolution and its potential influence on future advice and service propositions. Advisers interested in attending can register on the AdviserSoftware website.
