Where consumers go for advice

With a growing digitalisation of the financial advice, consumers with unmet advice needs still remained divided in their preferences between using the digital tools and humans, or ideally, combining the two.

Sarah Brennan, Investments Trends advisory board member, told Financial Newswire’s Platforms, Wraps and Advice Technology conference in the Hunter Valley, that the research had shown the interlinking between the digital and the human aspect of providing advice played a critical role.

But when consumers were asked who they were going to receive advice from, accountants came on top, according to the research.

“That is very much from tax advice perspective but what was really interesting in our business model research this year is that a number of practices that have actually increased a number of accountants, that sit within their business, is probably the largest area where we saw stark increases within practices this year,” Brennan said.

The second next most popular group to seek advice from were financial advisers from the superfunds consumers were using.

“[This showed that consumers] are acknowledging the awareness of super funds and advice,” Brennan added.

Importantly, the group of financial advisers outside the super funds also increased proving that seeking advice outside of super funds by consumers was also growing.

The last category, which was included in the research for the first time, was automated digital advice tools, with over 10% of respondents who said that where they would go to seek advice was from the automated digital tool.

“We have got data breakdown on age groups and often people think it’s just the younger [cohort] but that is not what the data shows. It’s young and old who are doing it.

“If we look at that digital side, 6% of those who have got unmet advice needs are saying they are amicable to use digital only solution,” she said.

However, when consumers were asked to describe what this represented to them, they said they would be more willing to use digital tool but “in conjunction with a person” which means they would be referred to an adviser if their questions remained unanswered or if their case was too complex.