35% of brokers believe that the biggest future threat to their business stems from robo-advice and technology.
As part of its recent Spring events series, Legal & General interviewed brokers to assess their views on the challenges facing the intermediary market. Secondary to the threat posed by robo-advice and technology was the unpredictability and unreliability of the world economy. Legal & General’s research also discovered that 17% of brokers felt that lenders posed a direct challenge to their future market share.
According to the findings, the percentage of brokers feeling pressured by the rise of robo-advice is highest in London, with 38% of London-based brokers expressing concern about losing business to robo-advice offerings. This stands in contrast to a quarter of brokers in Scotland who were most concerned over regulatory change that could challenge the future stability of the industry.
Jeremy Duncombe, director of Legal & General Mortgage Club, added: “Even though business may be booming right now, this research shows that advisers are acutely aware of the challenges ahead for brokers. 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 futureproof themselves to allow them to continue to thrive.
“To achieve this goal, advisers need to embrace technology and ensure that they are offering a holistic service that is able to meet all their customers’ needs, whether it be mortgages, second charge, equity release or insurance. If advisers want to avoid being left behind, the message is clear: adapt or risk being overtaken.”