Blog | LivePreso

What should financial advisers expect in 2025?

Written by LivePreso | November 24, 2024

The financial advice landscape in Australia is undergoing a remarkable transformation. Traditional advisory practices are evolving rapidly, with firms increasingly adopting a hybrid approach that blends personal relationships with digital innovation. You'll find advisers seamlessly integrating video consultations and sophisticated portfolio management tools alongside their traditional face-to-face meetings.

One of the most significant developments is the rising prominence of robo-advisory platforms. These automated solutions are democratising access to financial advice, particularly attracting younger investors who might have previously found traditional advisory services out of reach. While they're not replacing human advisers, they're certainly complementing them, especially for straightforward investment needs.

The regulatory environment continues to adapt following the Quality of Advice Review. We're seeing welcome changes in documentation requirements, allowing advisers to focus more on client service rather than administrative tasks. This streamlining of processes is making advice more efficient without compromising on quality or compliance.

Retirement planning remains at the forefront of advisory services, which isn't surprising given Australia's demographic shifts. Advisers are developing increasingly sophisticated approaches to superannuation optimisation, age pension planning, and aged care financial strategies. The focus has shifted from simple retirement savings to comprehensive longevity planning.

Sustainable investing has moved firmly into the mainstream. Clients are increasingly seeking advisers who can integrate Environmental, Social, and Governance (ESG) considerations into their investment strategies. It's no longer viewed as a niche preference but as a fundamental aspect of sound portfolio management.

The technological transformation is particularly noteworthy. Automation technologies, like LivePreso Advice, are revolutionising this landscape by streamlining the creation of advice documents. Modern platforms can now automatically generate ROAs and SOAs by pulling data directly from client management systems, reducing what once took days into a matter of minutes. This automation ensures consistency in document preparation while significantly reducing the risk of human error.

What's fascinating is how different demographic groups are engaging with financial advice. Millennials often prefer digital-first approaches with a strong emphasis on ethical investing, while baby boomers might combine traditional advisory relationships with digital tools for portfolio monitoring.

The industry does face its challenges. Making quality advice accessible to middle-income Australians remains a significant hurdle, and cybersecurity considerations are increasingly important as practices become more digitised.

Looking forward, successful advisory practices will likely be those that effectively combine technological efficiency with personalized service. While automation handles routine tasks, the human element remains crucial for understanding clients' complex financial and personal circumstances.

The evolution of financial advice in Australia reflects a maturing industry that's becoming more accessible, technologically sophisticated, and attuned to diverse client needs. It's an encouraging direction that suggests better outcomes for both advisers and their clients.

What aspects of these industry changes do you find most relevant to your financial planning needs? The intersection of traditional advice and modern technology often presents interesting considerations for clients.

Speak to us about how we can help transform your practice in 2025, with a free two-week trial.

https://www.livepreso.com/advice