It is an “absolute disgrace” that advisers are fighting to “get a basic bit of information” in 2023, according to Dharmea independent financial adviser, Marie Meagher.
Speaking at Home Game 3, an event hosted by the Lang Cat, Meagher was asked if the systems and tech she uses to deliver retirement advice to clients are generally helpful or a hindrance.
In response she said that they were a useful tool “at the basic level” but warned that from a wider perspective they can be “quite challenging”.
She explained: “They're big big blockers, as far as providers are concerned, that could make it far easier for us, as advisers, to actually even get information.”
Meagher also stated: “It is an absolute disgrace that, in 2023 that we’re fighting against everyone all the time just to get a basic bit of information and the timescales are shocking”.
AI
Additionally, Meagher warned against the use of technology, such as AI, in financial services in the future, stating: “I think we have to be very careful that we don’t lose human beings.”
She explained that advisers, as humans, bring a huge amount to a client’s situation.
“The AI is not going to tell you ‘are they getting divorced?’. The AI is not going to tell you ‘are they ill?’. They’re going to look at the data,” she said.
“The data’s fine but that’s not the human element. Human beings are very complex, they’re very different in personalities.
“I think sometimes we rely on tech too much and the human touch is lost.”
She added that she worries for younger people as they may make decisions based on what an AI says rather than what would be better for them.
A similar sentiment was shared by Unity Paraplanning head paraplanner, Kat Mock, who added: “Human beings are a massive contradiction and, day by day, we have different moods, decisions, and experiences.”
She warned that there isn’t currently an algorithm that can accommodate such “complex emotional but also primal, tribal people”.
She added: “I think there always needs to be a human element because financial advice is a conversation and you learn the most and gain the most benefit from a conversation.
“Technology can support and inform those conversations but I don’t think it will ever replace them.”
However, Mock also stated “I couldn’t do my role without tech” but said that, as there is an abundance of technology it’s very difficult to “take one hat off and move onto the next”.
She added that she found that the best tech is that which you can “pick up and run with immediately” so it would be possible to switch tasks throughout the day.
She also called for a “mindset shift” in advice firms due to the multitude of tech options they currently have.
She explained: “There may be several options available to solve a problem and meet a client’s goals and objectives, as there are loads of products out there.
“I think the mindset should switch over the next 10 to 15 years from ‘these are the things that we generally do’ to ‘these are the options, what are we bringing in, what are we putting back’,” she stated.
Financial education
When asked about what could be needed for retirement planning in the future, Meagher called for more education around financial matters.
She stated: “The younger generation is not educated enough about what’s needed longer term.
“There is a huge black hole coming that seems to have been swept under the carpet as far as the amount of money that is going to be needed in retirement as people are living longer. and this instant gratification that’s within society.
“I think educating the younger generation, whether that’s through tech or actual humans, is something that we really need to start getting hold of.”
This sentiment was echoed by Nokkel CEO and founder, Roland Whyte, who stated: “This is not going to happen overnight.
“In terms of being aware of what you need to do in order to reach retirement, and we’re past the days of defined benefit schemes, it’s all about saving.”
He added that trying to convince someone in their twenties that they should be putting money away for 40 years time is “not an easy thing to do”.
tom.dunstan@ft.com
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