The benefits of hybrid advice?
intelliflo’s eAdviser Index measures customers’ business metrics against their use of intelliflo office. The most recent research showed that “champions”, who maximise their use of technology, generated 54 per cent more revenue and 76 per cent more ongoing revenue per adviser. This signifies the ability for hybrid advice to reduce costs by promoting automating labour-intensive services.
Within intelliflo office, we are continuing to see consumers increasing their digital literacy skills, through the use of innovative digital solutions such as our secure client portal and video conferencing capabilities. This is maximising the value of advice while creating a more engaging experience for clients.
At the core of our value proposition is the desire to create a better experience for clients, that increases affordability through digitalisation. Whether it be the pre-population of client information or the ability to access real-time data feeds within a hybrid advice solution, reducing manual labour-intensive tasks is driving this vision.
The shortcomings of robo and traditional advice
While on paper the robo approach may appear to provide an effective and affordable solution, automation cannot provide the sense of trust, security, understanding and peace of mind that we receive from a financial adviser. Within the sector, we are seeing that growth for robo providers is slow, patient capital is required to support robo-advice providers and there is not a viable number of people who are happy to trust their finances with an algorithm. It is for these reasons that we see the future of robo advice as simply not feasible.
At the same time, the industry lacks the capacity to significantly broaden its reach using traditional methods only. As the usage of digital tools and processes continues to cement its position as the standard for industry practice, it will be difficult for advisers using traditional methods to offer a service that is comparatively affordable, engaging and fully transparent.