Human interaction is key to good advice and cannot be replaced but technology could be used help to close to advice gap, according to some in the industry.
A session at the ABI's annual conference today (February 27), titled Empowering Customers to Make Good Choices, touched on the role of technology in closing the advice gap.
Ross Liston, CEO at M&G Wealth Advice, told delegates that while technology can aid advice it will not replace humans.
He said: "Human interaction remains very important. When I look at how technology can help us, it can be a great co-pilot.”
He also looked at the Financial Conduct Authority’s review on the advice guidance boundary which includes proposals for a simplified advice regime and targeted support.
Liston said: "We are very supportive of the [review] and speaking to advisers, they are also very interested and engaged in the concept.
"One of the very real challenges in the advice space is capacity.
"New solutions for simplified journeys and a better use of technology is a big positive for us and advisers will embrace it.”
However he added the human aspect of advice is key to closing the advice gap.
"As far as these things can take us, we need to build on human empathy and trust to close that advice gap,” said Liston.
This was echoed by Alistair McQueen head of savings and retirement at Aviva who said "face-to-face interaction can't be beaten".
He added: "Only 8 per cent of people are currently engaging in advice, so that it is a massive bridge for the 92 per cent to go from nothing to full advice.
"These reforms can act as a positive bridge to drive people to face to face advice."
tara.o'connor@ft.com
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