Financial advisers who do not invest in technology may risk turning off younger clients, experts have warned.
Cicero Research found that over half of advisers feel that they can do nothing to challenge so-called 'robo advice', and that even those planning to digitise are setting aside just £17,000 for the process.
These figures come despite research from Cicero showing that nearly 40 per cent of clients would rather engage with their financial advisers digitally, with millennials being the most receptive.
"The industry has no real choice but to embrace technology or face becoming obsolete," warned Phil Wickenden, Managing Director of Cicero Research.
“The digitalisation of financial services is clearly starting to move beyond just a simple web search for consumers organising their assets," he added. "It has very much permeated into different aspects of their day-to-day activities – something advisers may have noticed but are lacking the commitment, or capital, for any serious changes to their operations accordingly."
Cicero's survey found that clients in the higher income brackets are the most receptive to the use of technology as part of the advice process.
Amongst consumers with a household annual income of more than £50,000, 56 per cent would welcome more technology in the set-up or transfer of suitable financial products; compared with 44 per cent of all respondents.
Despite the survey, financial adviser Adam Palmer, from Financial Themes in Chippenham, said that his clients still value face-to-face advice. "People like the personal touch and I don't think that is going to change," he said.
However, he added that the company had added some technology based services, such as offering consultations online via GoToMeeting, which had been popular with some younger clients. "They like to be able to manage their finances from anywhere in the world at any time," he said.
"We feel our offering is up to date but we will keep it under review."
