Phil Smith, chief executive of the Embark Group, said as we enter 2017 there will be several battlefronts as competition for the 'digital customer' intensifies.
He told FTAdviser advice businesses will identify new customer segments as adoption of online solutions for pensions saving increases over 2017.
Mr Smith said: "Full robo solutions, backed by a true end-to-end digital customer experience, will bring to market low cost solutions for the confident investor.
"But pensions investors are more cautious than Isa investors in their attitude to online savings and 2017 may be too soon for mass acceptance of fully digital solutions, despite their cost advantage."
Mr Smith added from what he has seen of customer behaviour, advice firms able to support end-to-end technology solutions with a human touch are closer to meeting current customer needs, and are likely to be the "winners" in 2017.
He added providers will be under pressure to justify their position in the value chain in the continuing low interest rate environment.
"Those who are successful will provide robust technological solutions that also have the flexibility to support distributors’ segmentation strategies.
"That will require strong and detailed partnerships with distributors where both sides contribute to the development and implementation of new innovations in customer propositions."
Mr Smith said that to date, much of the investment in platform technologies have focused in delivering back office solutions that deliver tight financial control and drive down unit costs.
"In 2017, the battleground will move closer to the customer with a focus on clean and intuitive user interfaces that encourage customer adoption.
"But I also think that the trend to look for social media reassurances before making online purchases will gather momentum in 2017."
Mr Smith added no look forward to 2017 would be complete without covering the launch of the Lifetime Isa.
He said: "Lauded as the solution for the young; a basic rate pension-lite with a property purchase break-clause, the Lifetime Isa is set to launch in April 2017, but storm clouds are gathering.
"The Financial Conduct Authority paper CP16-32 raises five areas of concern for the product before it has even launched under the headings of complexity, contributions, investments, access and tax."
He told FTAdviser the concerns are many, and include consumers opting out of workplace pensions or using the Lifetime Isa to fund a property purchase in their late thirties, having made no other pension provision.
"How an investment strategy can be devised when it is not known whether the duration is to retirement or a much earlier property purchase should be factored in."
ruth.gillbe@ft.com
