Over the next decade, Australia's demand for financial advice is projected to rise significantly due to an aging population and longer life expectancies. According to CEPAR, in 2021, there were approximately 4.31 million Australians aged 65 and over. By 2041, this number is expected to rise to about 6.66 million, representing a 54% increase over two decades.
These demographic shifts heighten the need for improved retirement and aged care planning, while the impending intergenerational wealth transfer will drive demand for estate planning and investment advice. The Productivity Commission estimates that A$3.5 trillion in assets will be transferred in Australia by 2050, primarily through residential property, superannuation, and other investments.
This rising demand is occurring alongside a shortage of financial advisers, resulting in a significant supply gap in the industry. Solutions are urgently needed to help scale financial advice operations and better serve clients. While regulatory reforms, like the Australian government’s Delivering Better Financial Outcomes (DBFO) package, aim to simplify advice production and reduce costs, firms must also embrace technology that adapts to changing regulations and broadens access to financial advice.
The financial advice landscape is changing rapidly, with mid-sized firms facing increased pressure to grow. According to the 2024 Advice Practice Profitability Report, many advisers have set ambitious growth targets, aiming to increase their client base substantially. The report indicated that 50% of advisers aim to increase their annual client numbers, with a collective goal of serving an additional 650,000 Australians over the next three years. This would involve increasing the average client load from 110 to 152 per adviser. However, this push for growth presents unique challenges. Inefficiencies in delivering advice and managing ongoing service requirements can hinder the personal, relationship-driven service clients’ value.
Fortunately, mid-size firms are well-positioned to navigate this transition. By fostering purpose-driven growth and leveraging technology, they can achieve a balance between the agility of boutique firms and the capabilities of larger institutions. True scalability requires systems designed for more than just efficiency; it involves simplifying and centralising client data, interactions, and advice journeys. A unified source of truth enhances collaboration and ensures a consistent client experience, regardless of the firm’s size.
As client expectations evolve, firms must adapt accordingly. Today’s clients seek transparency, real-time insights, and an interactive role in their financial journeys. Digital platforms that allow clients to access portfolios, track progress, and explore scenario-based advice foster trust, which is crucial for differentiation in a competitive market.
Compliance is another critical area for attention as firms expand. Innovative advice businesses are integrating compliance into their workflows with, allowing advisers to focus more on client service. This proactive approach transforms compliance from a mandatory requirement into an asset.
Flexibility is also essential. Each client has unique goals and strategies, and firms must offer advice processes that can adapt without creating operational burdens. Whether providing scaled digital or hybrid options, systems that support variation are vital for sustainable growth.
Ultimately, effectively scaling a mid-size advice firm requires more than just technology. Successful firms align their mission with their capabilities, positioning themselves for current and future client needs. They understand that the future of advice isn’t just about size, it’s about being better, smarter, and more human.
To thrive, mid-size advice firms must prioritise purposeful growth that enhances client experiences and operational efficiency. By leveraging technology for unified client interactions and promoting transparency, they can adapt to market demands while preserving their unique strengths. Successful scaling involves aligning the firm’s mission with modern tools, fostering lasting relationships, and delivering better, wiser, and more human advice to their clients.
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Posted in: Advice solutions
