The Advice Based World
The future is bright for financial advice
The demand for trusted advice grows yet confidence in the supply of trusted advisers is challenged. Deloitte sees an optimistic future for those with the foresight and determination to resolve this mismatch and transform their business models to tap into what we see as a considerable opportunity for the future.
While regulatory pressures have been the key drivers of past change within the industry, this is not a sustainable approach. There is, and will continue to be, a critical role for effective regulators to oversee the industry, but its future will be more dependent on stakeholders adopting more customer-centric business processes. The changes that lie ahead are as exciting as they are daunting.
In this report, we provide a working hypothesis of the future of the financial advice industry. We start by examining the growing demand for advice. We then consider nine levers that we believe will be required to provide Australians with the right advice, at the right time and in the right context. Some of these trends are already being seen in small pockets of the industry and in international markets which signals that in some respects, the future is already here.
We call this future The Advice Based World and for those organisations embarking on a transition to this world we also provide a plan for action.
The impetus here in Australia is that the regulatory framework is forcing the industry to consider and create the future. We believe this presents a unique opportunity to lead the world.