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Holistic approach needed for digital advice
Holistic approach needed for digital advice
Research and consultancy firm Rice Warner say a 'conceptual change' is needed in the way clients and advisers view digital advice services.
The company said that existing digital advice tools needed to offer more than "simple deterministic outcomes" and offer users with a more holistic picture of their finances, including budgeting and allocation of disposable income.
"Users need to be provided with insights relevant to their financial needs and decisions. Simply expecting users to combine the results of a number of general advice tools is impractical and counterproductive," Rice Warner said.
Rather, Rice Warner said these tools should be "integrated and linked to the platforms advisers use" because many digital advice users can still benefit from speaking to an adviser, and the adviser can "build on the explorations carried out by the consumers on their own behalves".
"If used in this way, robo-advice will assist advisers to deliver their service more efficiently and the outcomes will be more effective," Rice Warner said.
"Our preferred model is not one of replacing people in the advice process, rather it is one of retaining people for those aspects of advice best delivered by people while using technology for those aspects that consumers can or prefer to do themselves."
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