AdviserSoftware.com has undertaken a market study into the emerging ‘hybrid advice’ market in 2023 to gain deeper insights into the solutions currently available to advice firms.

The research maps current ‘hybrid advice’ capabilities and the state of technology integration to assess work still needed to provide a seamless advice journey in the future.

‘Hybrid advice’ involves the use of technology, automated processes and human intervention from a financial adviser to support aspects of the client’s journey. It supports the provision of tailored solutions, helping clients make well-informed decisions about their finances to achieve current and future financial goals.

Obtaining over 6,300 data points, the AdviserSoftware.com Hybrid Advice Study 2023 surveyed nine technology vendors and assessed 21 areas of each service across pre-retirement, at-and post-retirement, income, mortgage and family protection, and savings.

The research found that ‘hybrid advice’ solution providers invested the most amount of time and resources in markets such as the pre-, at- and post-retirement, with particular focus being placed on building out the client journey and offering planning solutions for clients.

Income protection, buying a home, mortgage protection, and family protection emerged as some of the areas least evolved to date, needing further development from technology providers to ensure comprehensive advice is available across all areas. This includes protection and savings where the most significant advice gaps remain. Currently, no single provider offers the full ‘hybrid advice’ journey.

AdviserSoftware.com says the ‘hybrid advice’ market still faces challenges when it comes to ensuring advisers understand exactly what ‘hybrid advice’ solutions can deliver and how they can be used within advice firms to support different client segments and needs. FTRC has worked with a number of advice firms this year to help them understand their ‘hybrid advice’ requirements and assist them with partner selection.

Another consideration is how technology vendors, whilst having delivered some very impressive capabilities, will need to improve the breadth and depth of their offerings if they are to deliver solutions that will address the needs of their prospective clients including advice firms.

Jason Green, chief commercial officer at AdviserSoftware.com, said: “Advisers are operating in a dynamic environment where their clients’ needs are bespoke, nuanced, and constantly changing. The tools and capabilities available to advisers need to keep up with these requirements and the holistic use of technology can help them do that. We’re pleased to be able to work with advice firms, offering guidance based on the insights from this survey to help them best make use of ‘hybrid advice’ in a way that empowers their clients.

“Whereas true ‘robo advice’ never really took off, we are already seeing ‘hybrid advice’ models appealing to forward-thinking advice practices. Although it is not a mature technology, the potential is clear as to how this can create more capacity for financial planners, produce propositions that appeal to a wider audience and support the demands of Consumer Duty, enabling clients to make better informed decisions.”