Younger clients are demanding technological improvements from SIPP providers as the market expands, new adviser research from iPensions Group has revealed.
More than three-quarters (77%) of advisers say younger generations of clients increasingly regard technological investment as significant when choosing a provider. That is a challenge for advisers as only just over half (52%) say they fully understand how clients are using tech.
The pressure from younger clients is adding to the pace of technology innovation in the SIPP market which is already accelerating due to the ongoing COVID-19 crisis - around 77% of advisers say the pandemic has significantly changed how they use technology.
Technology is not the ‘be all and end all' as it must be combined with and supported by strong, reliable and personable customer service."
However, advisers are warning that the switch to technology is bringing new risks with clients more prone to knee jerk reactions when managing their investments online.
Around half (48%) of advisers say clients' ability to trade instantly in response to stock market news has meant people making decisions that cost them money and which they later regret.
Nearly a third (31%) are worried that consolidation among SIPP providers is slowing down the pace of technological innovation.
Group CEO Sandra Robertson said: "The SIPP market is expanding year on year with new members investing and new products being launched to meet demand."
"But advisers are clearly concerned that without technology investment, SIPPs may no longer appear attractive to suitable clients. Adviser and member portals are increasingly a must-have for providers who want to compete."
"Technology is not the ‘be all and end all' as it must be combined with and supported by strong, reliable and personable customer service."
iPensions Group said it has made "significant investments" in technology as part of its growth strategy driven by a focus on innovation in the SIPP market as well as efficient and timely support for advisers and members.
Its bespoke technology platform, which was developed internally over three years, is enabling the company to add new SIPP products such as its Platform SIPP and to develop new services for its members and adviser.