More advisers in Australia are struggling to provide affordable financial advice, with 43% of surveyed advisers citing it as a challenge, up 10 percentage points from last year, a report shows.
According to Investment Trends' 2019 Planner Technology Report advisers also recognise the need to reduce the cost of advice, with 39% said it was a key business challenge in the post-Royal Commission world.
Investment Trends research director Recep Peker said advisers were aiming to expand their pool of clients as a means of dealing with the structural challenges facing the sector.
In their quest to lift client numbers and practice profitability, more planners are focused on lowering cost and serving clients in an affordable manner"
"For years, planners have struggled to grow their client base as they face a shifting regulatory landscape, the reputational impact of the Royal Commission and uncertain market conditions. In their quest to lift client numbers and practice profitability, more planners are focused on lowering cost and serving clients in an affordable manner," Peker said, the Financial Standard reports.
The report revealed advisers have already begun to make changes, with one platform discarded from a planner's technology mix in since 2009 on average.
Most planners now use two platforms to service clients according to the research, with the cost to clients being the largest factor (57%) for advisers when choosing a platform.