Why data is ‘the most exciting frontier’ for the advice industry

During a Q&A at the 2021 Adviser Innovation Summit, Rocky Scopelliti discussed why the next 30 years particularly will be data-driven and that financial services are no exception.

“You hear narratives that robo-advice is going to outdo the provision of financial services. I’m not a subscriber to that view,” Mr Scopelliti said.

“I actually think it’s how you augment data to deliver services that are much more precise [and] personalised [and] the way with which you can observe risk and personalised risk utilizing data and all the amazing technologies. That’s what we’re going to see.”

Mr Scopelliti added that the industry must ask to look at how data can be augmented to deliver new categories of financial service to clients and that the biggest change the sector will see in the coming years is around risk models.

“Data is going to enable us to see things in real time at global scale like we’ve never seen before,” he said.

“The way with which risk is treated, the way we observe risk and the way that we can manage for risk in real time I think is the most exciting frontier we can expect to see in advice.”

Earlier this year, financial services minister Jane Hume conceded that while “no one has yet cracked the nut” of full robo-advice service, advisers should embrace what robo-advice can do for the future of the sector.

“What robo advice and other digital tools will do is offer an alternative for people who don’t currently have access to an adviser, or who wouldn’t pay for an adviser,” Ms Hume said.

“It will get young people more engaged with their finances. And it may act as a gateway to full-service financial advice.”

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.