A vast majority of financial advisors have confirmed that they plan to implement a hybrid advice model within the next three to five years.
The data comes from a poll of almost 260 people carried out as part of the Hybrid Advice webinar conducted by The London Institute of Banking & Finance. The results showed that 52% of participants were ‘very likely’ to adopt a hybrid advice model whilst 39% were ‘somewhat likely’. The remaining 9% answered they were unlikely to adopt hybrid advice in the coming years.
Another poll conducted as part of the webinar suggested 42% of attendees believe that the hybrid model will require advisers to develop their knowledge in order to provide more complex advice to complement technology-led initiatives.
Webinar panellist, Nick Hall who is Head of Advice at Wealth Wizards, a technology firm in the hybrid advice space said, “the poll results are very encouraging and reflect the level of traction that hybrid advice is gaining in the financial advice market.
“Hybrid advice blends the human touch with digitisation and automation, to create an advice experience the customer would want and expect from their advice firm, particularly following the pandemic where familiarity with digital has increased significantly.
The future is hybrid
Stretching back to 2017, when the FCA provided commentary on the budding hybrid advice market, the regulator believes the model could be the right answer for consumers’ needs.
“We see automated advice as a valuable vehicle to help tackle the issues faced by those consumers who are unserved or underserved by more traditional advice models,” said Bob Ferguson, Head of Department, Strategy & Competition Division, at the FCA in a speech in 2017.