I believe technology will have an unparalleled impact on how advisers work in 2025. Let me explore why.
While, for many years, industry technology has over-promised and under-delivered, we are reaching a stage where many key technologies are attaining maturity and will deliver long-awaited change. Platform-comparison services, API-based platforms and next-generation protection portals are all great examples
The make-up of the adviser market is changing faster than ever. If you want to sell, having your tech in good order and documenting your recurring income is essential to maximising exit value. With sellers now significantly exceeding buyers, clearly demonstrating the embedded value in your firm could now be the difference between selling for a healthy price or a fire-sale valuation.
At the same time, we are seeing firms being built by younger advisers who fully recognise the benefits of tech and automation. For them, the advice market will change beyond all recognition during their careers, so it is inevitable they will put technology at the heart of all they offer.
We are reaching a stage where many key technologies are attaining maturity and will deliver long-awaited change
In the wealth market, I expect to see far more volatility in platform asset movement. Some firms, notably but not exclusively Aviva, Quilter and True Potential, have substantially insulated themselves from this by being deeply embedded in distribution. This means the overall proposition can be around a far wider range of benefits and is less subject to cost pressures.
Other long-term stalwarts are far more vulnerable to disruption. In 2025, we will find out how much impact Intelliflo Wealthlink will have on other platforms. My own adviser is one of the early adopters, and I hear glowing reports from her.
Add in Seccl and you have a market ripe for disruption. I anticipate a significant increase in use of platform due-diligence tools such as The Lang Cat Analyser and AdviserAsset (acquired by FE fund info in 24). These will play an increasingly important role if assets are retained or redirected. Others may also join the party.
Cybersecurity will be a crucial issue for advisers. I’m reliably informed only 4% of such firms hold cybersecurity insurance. If you are one of the remaining 96%, it is time to do something about it.
The Pure Protection review will trigger major change in how firms deliver protection advice. Despite the clear requirements of the Consumer Duty, most protection advice is still price driven. Indeed, some firms are explicitly demonstrating that they are not fully complying with FCA requirements by measuring quality for critical illness, but not income protection or other life products.
I expect a major realignment of market share in the Protection portal market. Historically, this has been dominated by iPipeline and Iress The Exchange. I am very impressed by Direct Life & Pensions’ new Novium system, and it must be inevitable that we will see something new from Synaptic in this space, given their acquisition by Fintel and recent hires.
While a disaster for most of the population, Rachel Reeves’ Budget has created many opportunities for the personal-finance sector
Adding quality to price-comparison services will be crucial to keep the FCA happy, and I expect to see this coming both via API feeds into existing portals and/or quality services embracing third-party price feeds.
While a disaster for most of the population, Rachel Reeves’ Budget has created many opportunities for the personal-finance sector. We will undoubtedly see many product launches off the back of the Budget as soon as the actual small print becomes clearer.
That said, I have never understood why platforms and insurers pay so little attention to the technology used in adviser firms when it comes to product selection. If an adviser used key technology as part of their operating process, and a new product cannot easily accommodate it, that will be a major barrier to achieving sales.
Looking back over the last few years, I can see this as a major factor for why many products have failed. 2025 needs to be a year where anyone bringing a new financial product properly audits how it will work with the key adviser tech long before launch.
Ian McKenna is founder of FTRC
I would contend that the adoption of technology is incremental, not a ‘big bang’ There is plenty of useful technology, but I have first hand evidence of the number of advisers who are not competent with Microsoft Excel or any other spreadsheet programme. As for comparison sites – spoon feeding. Do your own research it really isn’t rocket science. (A spreadsheet helps!) Same goes for cash flow – a good spreadsheet programme works well and saves a ton of money. It just seems that advisers now want eveything on a plate. They either can’t or don’t want to “get down and dirty”.