Robo-advice will be the biggest threat to IFA businesses in the next 10 yearsaccording to polling at the New Model Adviser® Conference and Awards, but training the next generation of young advisers was chosen as firms’ top business priority for 2018.
Advisers were asked: ‘what will be the biggest threat to your business in the next 10 years.’
Robo-advice/DIY online investment got the highest number of votes, with 37% choosing that option (See chart). Demographic changes, for example the end of the baby boomer cohort, was chosen by 31% of advisers while only 8% thought banks returning to advice was the biggest threat in the next decade.
Vivian Slattery, director of Purley-based Monetary Solutions said: ‘In terms of the biggest threat to the business in the next 10 years, I voted for ‘robo-advice/DIY investment’ because most of what young people are using is robo-advice, they are not engaging with IFAs.'
When asked to pick a goal for 2018, 32% of advisers chose the option ‘train more advisers’.
Becoming experts in financial life planning came second with 24% of the votes (see chart).
Slattery added: ‘It is a good sign people are looking at bringing on more people as part of their exit strategy, rather than just selling their business. That is a good sign for the profession.’
Check out the latest episode of the New Model Adviser® podcast, recorded at the conference, with guests Steve Buttercase, principal of Verve Investment Planning, and Anna Sofat, managing director of Addidi Wealth. Listen below: