New research urges advisers to embrace hybrid models

With 63% of Australians under 40 being open to digital advice solutions, embracing hybrid models, AI, and chat-based tools can help scale advice efficiently and meet clients where they are, according to new research from Deloitte Access Economics and Iress.

The new research, encompassed within a report titled The Big Lift, has coupled both financial advisers and superannuation funds as standing to be advantaged by embracing new forms of advice, such as guidance.

The research findings are cast against the background of Australia’s “alarmingly low  levels of financial capability” in circumstances where it says the term captures both the understanding of financial concepts and the application of those concepts through financial behaviour.

The research suggests that Australian financial literacy rates have declined by 4.5% on average from 2016 to 2020.

It said modelling from Deloitte found that if all Australians were to lift their financial capability to an ‘advanced’ level, it would equate to a $112,95- increase in average household wealth, or $1.2 trillion nationally.

Commenting on the research, Deloitte Access Economics partner, John O’Mahony said financial capability is critical for building wealth, enhancing wellbeing, and supporting Australia’s economic prosperity, yet 59% of Australians have low financial capability.

“While some foundational skills are built in schools, financial capability is strengthened through everyday financial engagement, representing an opportunity for the financial services industry,” he said.

“The Big Lift research found that 57% of Australians report more confident decision-making after receiving financial education or advice. There is an opportunity for advisers and superannuation funds to help Australians turn knowledge and understanding into confident action.

“By integrating financial education into everyday services, providing accessible advice, and offering innovative guidance models, the financial services industry can help Australians make informed decisions about saving, investing, and planning for the future,” O’Mahony said.

Iress Wealth APAC chief executive, Kelli Willmer said the research had uncovered a $2.1 billion growth opportunity for Australian advisers through specialisation, scaling smartly and embracing technology.

“Technology and regulation has given advisers an opportunity to re-think how advice is delivered, what services are offered, and who can access them,” she said.

“With 63% of Australians under 40 being open to digital advice solutions, embracing hybrid models, AI, and chat-based tools can help scale advice efficiently and meet clients where they are. At the same time, offering financial education, simplified products, and coaching programs can build client confidence and unlock new revenue streams.”