At least 50% of advisers looking to take up new technology in the post-Retail Distrubution Review (RDR) period are enquiring about direct to consumer (D2C) systems, according to one tech specialist.
Gareth Thompson, website designer and owner of Hampshire-based Code Potato, explained that of the 30 meetings he has held with advisers since the beginning of the year, about 15 have expressed interest in setting up their own D2C solutions.
According to Thompson, these clients are in the main heading up small advisory firms, or running their own sole trader practices. "They are looking to service people they are currently unable to service," he said.
He explained that advisers seemed to be most interested in such a solution because it is a way of them scouting or coaching a section of the market that they would not normally access.
"If they can get their brand in front of people that are too early or too low in their income to afford financial planning but are interested in transactional services, once the brand is more likely to be in their mind when they are older and have made money.
"Similarly, companies have really thought through their business model post RDR, and many think this would be another string to their bow."
He added: "In about five-year's time most advisory firms will have a D2C offering."
Unfortunately, according to Thompson, the products on the market are currently too expensive for smaller companies at about £10,000 while most seem willing to to pay just £2,000 or £3,000.
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