Advisers are being urged to proactively adapt to changes in clientele, products, technology, and business structure to stay competitive.
The authors of Advice 2030: The Big Shift – published by Deloitte Access Economics in collaboration with Iress – list seven megatrends that could change the future of financial advice.
They look at shifts in competition, climate impacts, demographics and client priorities that “…will generate greater demand for specialised financial advice”.
The report states consumers in Australia are demanding a broader set of advice support across retirement, inter-generational wealth transfer, wealth accumulation outside of the family home, natural disaster resilience, and digital assets.
Deloitte identified seven external megatrends that will influence the financial services sector over the coming years:
- Skyrocketing retirement demand
John O’Mahony. - Natural disasters and environmental volatility
- Housing unaffordability
- Digital delivery – of everything
- Inter-generational wealth transfer – ‘the grey tidal wave’
- Riding the green wave of future investing
- The rise of digital assets and product proliferation
Deloitte Access Economics Finance Lead Partner John O’Mahony says while the ‘big shift’ will transform the competitive landscape of the advice industry, advisers have agency to ready themselves for the future.
He says to take advantage of a changing future, advisers need to make choices today that can best service evolving customer needs.
…advice business models must evolve…
“Advisers can avoid being edged out in an increasingly competitive sector by adapting and perfecting their unique customer profile, business model, specialised advice capabilities and technology selection,” he says.
“By embracing the megatrends and mapping their practice against the current landscape, advisers can carve themselves a sustaining market position.”
Iress CEO Marcus Price says proactive advisers can adapt and improve their practices by harnessing advanced technology and developing an acute awareness of their clients’ changing needs.
“What’s clear though is that advice business models must evolve to capture this demand effectively, as well as adapt to better reflect the breadth of needs from consumers,” he says.
Click here to access the complete report.