That was according to Harrison Spence’s latest Adviser Views survey.
Alan Marks, managing partner of Harrison Spence, said: “IFAs have long been wrestling with how they can continue to advise lower-value clients profitably.
“Now, the emergence of automated investment technologies seems to have provided a genuine answer.”
Three-quarters of advisers said they wanted to continue to work with ‘low value’ clients, with a further 1 in 10 (9%) actively looking to acquire more.
Mr Marks said: “As the ‘advice gap’ widens, IFAs’ commitment to continuing to provide advice to less wealthy individuals is admirable and stands in contrast to some wealth managers who are turning away even high net worth individuals because they do not meet their assets threshold. However, as compliance costs escalate, they must look at more efficient, less labour-intensive ways of working.”
However, six in ten advisers of the 170 respondents (57%) said that they were not interested in using technology to increase business profit, a similar level to twelve months ago when 60% had either not considered it or saw it as expensive, complicated and the preserve of the banks or larger IFA networks:
Mr Marks said: “Technology firms love to speak of ‘solutions’, but in one sense at least this rather hackneyed phraseology might actually be spot on. The fact that the biggest global brands are all now piling into robo-advice says it all.
“With four in ten advisers now seeing the potential increased efficiencies of robo-advice, the others must ensure that they don’t get left behind.”