Millennials need basic money advice - not just guidance - but the industry still lacks the tools and the resources to cope with demand, the chief executive and co-founder of Advicefront has said.
Jose Supico, CEO of the hybrid advice model which launched in the UK last year, said it was important for advisers not to miss a competitive advantage by providing help to younger and less wealthy clients through strategic use of technology available.
Mr Supico explained: "Research shows a large percentage of millennials still want humans involved, albeit on their terms, when it comes to money.
Clients will thank advisers for saving their time by providing a digital interface with straight-through processing. Jose Supico"Also, many advisers desperately need tools to engage with this demographic as this is the only way to nurture relationships with the heirs of current clients or keep a pipeline with clients who are high earners but don't yet have the assets to justify a traditional face-to-face service."
He said the solution would be a combination of technology and human touch - the so-called 'hybrid' advice model - if advisers were to remain competitive.
Mr Supico added: "Clients will thank advisers for saving their time by providing a digital interface with straight-through processing where they can always reach out to a qualified professional if something important comes up, and advisers will be able to establish many more relationships than before and still make a tidy profit."
This comes after news that a regulated mortgage robo-adviser, MortgageGym.com, is set to be launched in the UK in the coming months.
The service will allow UK homebuyers to complete their mortgage application online in 15 minutes through a free, online portal combining robo- and live-broker advice.
MortgageGym allows brokers to acquire customers independently, operate a paperless business and remain compliant under the Mortgage Market Review (MMR).
Last year, FTAdviser reported on the development of Advicefront, which aims help UK advisers attract and service millennials and less affluent investment clients.
The service, which can be whitelabelled, allows adviser firms to attract new clients, generate investment plans and create fully compliant audit trails online.
simoney.kyriakou@ft.com
