Technology is increasing the pressure on clients and advisers

Increased use of technology is turning up the pressure on advisers and their investment clients, according to new research* from wealth manager Investec Wealth & Investment (UK) with financial advisers and financial planners across the UK.

Its study found 91% of advisers say investment clients have become more demanding over the past three years in terms of the services they want and how often they are in contact, with technology the biggest driver.

Around four out of five (81%) of advisers say clients are more demanding because they want to make more use of technology and to have greater insight into their investments. More than half (53%) say clients have become more demanding because they are more aware of their rights.

However, the research by Investec Wealth & Investment (UK), which provides products and services to help advisers build a competitive advantage and protect and grow their clients’ wealth, found advisers are increasingly finding it difficult to switch off.

Around 67% say they find it difficult to block out noise from social media and stock market updates with 4% admitting they find it very difficult.

Investec Wealth & Investment (UK)’s research found 44% of advisers believe clients have become better educated about the markets and the advice industry over the past three years while around a fifth (22%) say clients have become more demanding as they are also bombarded by noise from social media updates about the markets.

Simon Taylor, head of strategic partnerships at Investec Wealth & Investment (UK), said: “Growing use of technology is turning up the pressure on advisers and their clients who quite rightly want the best possible service when investing. The last three years have seen huge volatility which has certainly increased the demands on advisers who would very much benefit from more support themselves.

“We urge advisers to explore investing in AI to make their business more efficient and help them to deal with the demands of today’s clients, whilst outsourcing non-core services to trusted third parties.”

Investec Wealth & Investment (UK) offers an award-winning, bespoke discretionary managed investment service which is highly flexible and built around adviser’s clients’ individual preferences and specific investment goals. It can also be applied to almost any investment structure, including joint or sole accounts, ISAs and trust assets.

Once the adviser has agreed the most suitable mandate with their client, their portfolio will be actively managed on a discretionary basis. This enables advisers to leave the day-to-day decision-making to Investec and allows Investec to respond quickly to market changes or capitalise on opportunities that are in the best interest of the adviser’s client.

Investec Wealth & Investment (UK) offers a number of specialist services within its Bespoke Discretionary Fund Management. This includes the AIM Portfolio IHT Plan, which can reduce advisers’ clients inheritance tax liability on assets passed onto the next generation and also aims to deliver outstanding long-term performance as well as a Structured Product Service, which gives advisers’ clients the security of a set return over a defined period with a choice of two structured portfolios which have the potential for positive returns in rising, flat or falling markets. 

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Notes to Editors

* Investec Wealth & Investment commissioned independent research agency PureProfile to interview 100 IFAs and financial planners across the UK during January 2024.

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About Investec Wealth & Investment (UK)

As one of the UK’s leading wealth management firms, we are trusted with managing £40.7 billion (as at 31 March 2023) of our clients’ money. Our wealth teams work hard at providing Out of the Ordinary levels of service to our clients and with an investment heritage dating back to 1827, we’re built for the long term.

Investec Wealth & Investment (UK) is a trading name of Investec Wealth & Investment Limited which is a subsidiary of Rathbones Group Plc. Investec Wealth & Investment Limited is authorised and regulated by the Financial Conduct Authority and is registered in England. Registered No. 2122340. Registered Office: 30 Gresham Street. London. EC2V 7QN. Member firm of the London Stock Exchange.