Adviser Ratings Research recently released the findings from their survey (conducted in December of 2017) of over 1100 financial advisers across Australia. The 2018 Australian Financial Advice Landscape Report found that AdviserLogic is rated as the number one financial planning software in Australia, as voted by the country’s leading financial advisers! We uncover other key trends that have arisen from the survey data, to delve deeper into the report and determine what is and isn’t working for financial advisers in 2018.
The financial planning industry is growing
There has been a 25% increase in financial advisers in Australia in the last five years. Furthermore, there’s been a marked growth of 55% in advice under management within the same time frame. With plenty of advisers and practices flooding the market, it’s more important than ever to maintain effective systems and processes to stay ahead of the competition.
Australia rates highly for superannuation
Advice regarding superannuation, and in particular, SMSF is exploding. Australia is rated fourth, globally, in terms of assets held in pension (superannuation funds) at $2.8 trillion. Hot on the heels of the US, UK and Japan! As our population ages, those reaching their 50s and 60s are looking to get more out of their retirement funds, and require expert advice to do so.
Exit strategies are essential for retiring financial advisers
As trusted advisers retire or choose to leave the industry, they will pass their long-term clients onto younger, sometimes greener advisers. Unfortunately, this has seen a widespread negative reaction from older clients, who aren’t eager to trust these ‘young guns’. This has resulted in difficulties in maintaining client retention levels. It is therefore essential that all advisers have strategically thought-out and structured exit strategies in place to ease this process. Older clients tend to be less accommodating of change and require specific attention when it comes to building trust with a new financial adviser.
More advisers are choosing to branch out on their own
There has been a significant increase in the number of advisers choosing to leave established practices in favour of solo pursuits within the industry. Indeed, in the last five years, there has been a 43% increase in privately owned licensees in Australia. Furthermore, individuals breaking into the industry are also choosing to do so privately rather than through an institution.
Innovative new financial planning software is making strides
Large financial planning software vendors that previously dominated the market are falling out of favour. Advisers are turning to new start-ups and fast-growing software developers with an eye on innovation, efficiency, customisation and superior integration. This is plainly seen through AdviserLogic’s shift to the top-rated financial planning software in the country.
There are many changes occurring in the financial planning industry and it’s essential for all advisers to embrace these shifts as they transpire in order to stay afloat. Here at AdviserLogic, we have our finger on the pulse of the industry, know how to adapt to sudden changes and customise our software to suit the needs of the individual practice or licensee. Contact us today to enquire about our software packages and how we can assist you to stay ahead of your competitors.