‘We can’t wind the clock back’: Why advisers and technology must come together

Financial advisers must work “in conjunction” with digital moving forward, a local CEO has suggested.

Speaking on a panel at the Stockbrokers and Investment Advisers Conference this week with looked as multigenerational engagement as wealth transfers, Craig Keary - Asia-Pacific chief executive of digital advice provider Ignition – argued that the future of the industry will rely on technology.

“We can’t wind the clock back,” Mr Keary said.

“There is absolutely a place for face-to-face advice. There’s also a place for digital advice. We’re going into a period of extraordinary times where people are going to be under massive financial stress.

“They’re going to need more than just simple investment advice. They’re going to need a whole range of saving strategies, debt reduction strategies and the only way to do that in a cost-effective way is supplementing humans with technology and both working in partnership.”

The panel’s formation came on the back of the Productivity Commission’s wealth transfer report which estimated that $3.5 trillion or an average of about $175 billion per year will pass through the generations in the next two decades. 

Mr Keary said it is not about one replacing the other, but both working together.

“I think we’ve got a lot of wisdom in financial services and wealth management in this country. It is actually about that working in conjunction with digital to actually get that message across to a broader audience,” he said.

Speaking to ifa earlier this year, Mr Keary noted the government’s terms of reference for the upcoming Quality of Advice review (QAR), saying it highlights the importance of technology in financial services.

The QAR’s terms of reference state that the review will consider the use of regulatory technology and digital advice, and will “pay particular attention to how technology and digital advice might enable mass market adoption of low-cost advice”.

“It reflects the growing maturity of the financial advice industry, the government and regulators, in acknowledging the important role that technology will play in making financial advice more accessible to more Australians, in a cost-effective manner,” Mr Keary said.

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.