Technology and AI will help to underpin, but not replace, financial advice

Roger Brosch, CEO of Foster Denovo, offers his predictions for 2018 and believes the industry will see the rise of artificial intelligence (AI).

The rise of digital
Roger comments: “we are already beginning to hear about the rise of AI across the sector. However, I don’t believe it will gain a foothold next year, but its ability to transform the way the sector can deliver products that are relevant to clients means that its emergence cannot be ignored.”

Roger goes on to consider the rise of digital, in general. “Digital capability will begin to underpin the financial advisory process, helping to make propositions more relevant and engaging. However, human interaction will – I believe – remain a constant. Technology will help to underpin, but it won’t replace, financial advice.”

Consolidation
Roger also believes we will see further market consolidation throughout 2018, commenting that “there is still some way to go over the next two to three years, and many exciting opportunities for firms looking to build scale and better quality propositions for clients.”

More young blood
“Now that the sector is becoming viewed as ‘more professional’, the need for the service is greater than ever,” says Roger. “And, we are seeing an increase in the number of highly qualified individuals entering the industry. I believe this will include a greater flow of graduates – perhaps representing the early signs of the necessary regeneration of the sector.”

Brexit
When it comes to Brexit and the economic backdrop, Roger confirms that this “doesn’t concern him too much. Arguably, the more challenging the environment, the greater the need for more (and better quality) financial advice.”

He concludes: “2018 will represent another exciting year for the sector, and we hope to be at the forefront of leading change and innovation.”