London advisers are feeling more pressure from the rise in the popularity of rob-advice, than advisers in other parts of the country, as 38% said they were concerned about losing business to automated advice models.
Advisers in Scotland did not feel the threat as keenly, with around a quarter listing robo-advice as the greatest risk to business levels. Regulatory change topped the list of greatest business risks in Scotland.
After robo-advice and technology, the unpredictability and unreliability of the world economy was voted as the greatest risk to intermediaries’ business levels. Legal & General’s research also discovered that nearly one in five brokers felt that lenders posed a direct challenge to their future market share.
Jeremy Duncombe, director, Legal & General Mortgage Club, said: “Even though business may be booming right now, this research shows that advisers are acutely aware of the challenges ahead. With changing customer behaviour and the FCA’s support, technology is likely to become an even greater opportunity or threat for intermediaries. It is therefore essential that brokers look to future-proof themselves to allow them to continue to thrive.”
Duncombe urged advisers to embrace technology and offer a holistic service covering mortgages, second charge, equity release or insurance.
He added: “If advisers want to avoid being left behind, the message is clear; adapt or risk being overtaken.”
