Given the tools, advisers recommend more diverse strategies

New data analysis from Padua Solutions has confirmed that while the most-used strategies provided by financial advisers remain around superannuation and retirement, they are increasingly utilising technology to broaden their offering.

The data, collected by Padua out of its Padua Recommend product, has confirmed that advisers have been more readily introducing their clients to more complex strategies when they have the technology tools to do so.

The Padua Recommend product can be used by financial advisers to match the most appropriate advice strategy to their client’s goals and objectives.

Padua executive director, Matt Esler said that his firm had been witnessing a significant increase in the number of technical strategies being recommended by financial advisers.

“This indicates to us that by providing advisers with access to better advice technology they feel empowered to recommend more strategies which, arguably, increases the value of the advice they are providing to their clients,” he said,

Esler said that in the first two quarters of the year, advisers with access to Padua Recommend had recommended a total of 277 strategies, accounting for approximately 31.5% of all technical strategies available via the product.

“There was significant growth from the Q1 2024 where 141 strategies were recommended (or 16% of total available) to Q2 2024 where 247 strategies were recommended (or 28% of total available),” he said.

“This growing trend underscores the impact of our enhanced platform: it not only broadens the scope of advice provided but also ensures that clients are receiving more tailored and beneficial financial strategies.”

According to Esler, the correlation between access to sophisticated advice technology and the increase in recommended strategies is unmistakable.

“It speaks to the growing recognition among financial advisers that a more robust advice capability that understands the strategies that are eligible to their clients, allows them to explore and implement a wider range of strategies, ultimately leading to better investor client outcomes,” he said.

“As the number of recommended strategies continues to grow, so too does the potential for financial advisers to deliver even greater value, making quality financial advice more accessible and impactful.”