Technology pressuring traditional advice model

Consultancy firm Deloitte has found six 'pressure points' where disruptive technology will challenge traditional financial advice models.

Research published in the company's Future of Financial Advice: Impacts for Australia report found that "disruptive alternatives are raising the bar of expectations on quality of both products and services" and businesses will need to respond.

"Shifts in the power base between customer and provider are redefining the trust equation from the simple one of 'safety and security' to a more complex one of 'maximum financial value'," the company said.

Increased accessibility, heightened service expectations, the changing role of data, building trust, new engagement opportunities and customer empowerment are all putting increased pressure on the industry, the company said.

Deloitte said the financial services industry would need to make a number of changes to adapt to this new environment, including defining performance measures in terms of customer outcomes rather than product-related incentives, making customer analytics core to business operations, and seeking looking for "unique networks and alliances" to provide customers with more complete services.

Additionally, the company encouraged financial services firms to move beyond engaging with customers to empowering them, and advocating for better customer outcomes to help rebuild trust with the industry.