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Firms that provide clients with digital tools as well as access to human advisors are ranked higher than both traditional and robo-advisors, says a report from consulting firm Accenture.

The report, called “On the Front Foot,” argues that the hybrid advice model is the way of the future. Rather than disappearing with the advent of robos, human advisors will remain an important part of meeting client demands, it says.

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As automation removes manual tasks such as client profiling and asset allocation modelling, advisors will need more advanced qualifications—in areas such as tax planning—to keep up, it says.

“Advisors will likely need to offer differentiated services, such as goals-based financial planning, which could add value beyond simple asset management […],” the report says. Services should also be “priced accordingly.”

Read: 20 ways to be a better advisor

The report includes a prediction that commission-based incentives will disappear in favour of annual salaries for advisors; grid-based and revenue-sharing advisors will also “slowly diminish over time,” it says.

When it comes to the number of support and research staff that firms employ, AI and machine learning will have an impact, the report says. Those tools will play a bigger role in monitoring markets, generating customized client reports and finding patterns in clients’ investment decisions.

Read the full report here.

Also read:

Why and how to compete with tech behemoths

Why investors need your help: CSA survey

Originally published on Advisor.ca
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