Technological change that was accelerated by the Covid-19 lockdowns has seen the client books of 75 per cent of advisers grow in the last three years.
Advisers have embraced the “productivity dividend” that was brought about by the pandemic according to Dynamic Planner published research today (December 14).
The research found that advice firms maintain a confident outlook about the future.
Over half (57 per cent) of advice firms expect their businesses to continue to grow according to the risk profiling firm’s annual spotlight report.
What was gained from this once-in-a-generation technological advance cannot be underestimated — Yasmina Siadatan, Dynamic PlannerThis confidence is built on the growth experienced in the last year according to the report, which noted that the number of clients served by each adviser surveyed has increased since last year’s report.
Of the 380 respondents, 88 per cent agreed that technology has improved their ability to service clients with time spent travelling reduced as a result of online meetings.
In last year’s report, the majority of firms said they expected to retain a hybrid model of online and face-to-face working that was developed in the Covid period.
The results from this year’s survey show that this has borne out, with over 75 per cent of firms either working hybrid or fully online.
Only 23 per cent of respondents said they have returned to a majority face-to-face model.
Dynamic Planner sales and marketing director, Yasmina Siadatan, said this year’s report “paints a picture of a flexible industry that has weathered considerable challenges and emerged stronger”.
Siadatan noted that this year has been a turbulent one for advisers and their clients with the war in Ukraine, the energy crisis and high inflation all impacting decision making.
Figures released today from the Office for National Statistics showed that the rate of inflation dropped slightly to 10.7 per cent in November, but it still remains at a historically high level.
In addition to these macro issues, Siadatan also pointed out that the advice industry is “reckoning with the biggest regulatory overhaul since the retail distribution review” in the form of the consumer duty.
Despite these challenges, the survey results show a “buoyant industry facing the future with confidence”, according to Siadatan.
“The productivity dividend that came from the pandemic looks to be here to stay. Hybrid working models remain in place and, as a result, advisers are looking after increasing numbers of clients.
“What was gained from this once-in-a-generation technological advance cannot be underestimated, it is enabling financial planning to be accessed by more people than ever,” Siadatan said.
The report also highlighted that the confident mood in the industry is translating into happy individuals within the sector, with 87 per cent of respondents saying they would recommend a career in financial planning.
jane.matthews@ft.com
