Rate of technological change a challenge for advice

Concept of fast internet with running businessman with a laptop

The quick speed at which technology evolves presents challenges as well as opportunities to financial advice practices, according to MyProsperity.

Speaking on a Netwealth podcast, MyProsperity chief executive and former Xero managing director for Australia Chris Ridd said technology’s rapid rate of change made it difficult for advisers to stay ahead.

Mr Ridd said he was surprised by “how antiquated” a lot of advice technology was when he first engaged with the industry, adding that advisers still remain behind the accounting industry in terms of adoption.

“There’s so much opportunity today to do a better job through data, client engagement; there are great choices, but it’s almost like accounting,” he said.

“I would say that accounting is actually further ahead than financial advice in terms of application of technology, and I think it’s that challenge; anything involving rapid change and the need for technology to actually stay ahead or at least survive, is always going to be a challenge.”

However, Mr Ridd said this was not true for all advisers and that some in the industry are at the forefront of innovation while others lag well behind the rest of the industry.

“I see a lot of different advisers out there in the market,” he said.

“I see those that are really struggling with that; they want to get ahead and they want to be able to have a point of difference and they want to use technology to try and engage clients but are struggling with it, and others that have made that early leap.

“They’ve adopted technology in ways that really use it as a lever, as a way to get a leg up, so I see a lot of opportunity and a lot of challenges around those things.”

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