Produced By: Ensombl
In an era defined by rapid technological change and evolving client expectations, financial advisors must increasingly rely on sophisticated digital tools to deliver advice efficiently and ethically. Gone are the days when advisors could rely solely on face-to-face meetings and paper-based information packs to engage with their clients. Today, younger generations expect instant updates, mobile applications, and seamless portals, while older or less tech-savvy clients may prefer face-to-face touchpoints but still benefit from digital resources. Meanwhile, global developments—from the United States to the United Kingdom—offer new perspectives on regulatory standards, client portals, and data integration.
In a recent conversation, Host, Sacha Loutkovsky, spoke with David Pritchard, Executive Director of CFS Wrap at Colonial First State, and Brett Arnold, General Manager of Advice at Viridian Advisory. They discussed the changing nature of client engagement, the technologies available to advisors, how different markets have influenced innovation, and, critically, how professionalism and ethics undergird all these developments. This article, drawing on their insights, highlights how advisors can incorporate new technology while staying true to fundamental standards of integrity, confidentiality, and client best interest.
Over the last few decades, the financial advice industry has undergone seismic shifts. Technology is at the forefront, driving new modes of communication and service delivery. David Pritchard points out that “the bar is really high” when it comes to meeting client needs today because people have grown accustomed to user-friendly, on-demand applications in nearly every facet of their lives:
“No matter where you are, just look around—everyone is on their phone. If you’re going to send a notification, it must be timely, relevant, and personalized.”
Meanwhile, Brett Arnold reminds us that the pandemic accelerated the pace of digital adoption in financial advice. Advisors and clients alike found themselves conducting reviews via video calls, exchanging documents through secure online portals, and signing papers with e-signatures. This shift did not eliminate the importance of face-to-face meetings but rather augmented how those meetings fit into a broader digital ecosystem. The industry has pivoted towards a “one-size-fits-one” model, where each client’s preferences and needs shape the mode of service delivery.
One of the challenges is that financial advisors often serve a diverse client base spanning different generations. Many Baby Boomers are well into retirement planning and sometimes less keen to rely solely on technology; yet, as Brett notes, “don’t be ageist” in assuming older clients cannot or do not want to use smartphones. Conversely, younger generations—accustomed to social media, apps, and real-time updates—demand an instantly accessible environment and may not open an email if the subject line does not grab them.
The key, then, is flexibility. A robust advisory practice can “drop out of digital” to offer a personal touch and then seamlessly “drop back into a digital experience” to maintain efficiency, explains David. This approach aligns with an ethical commitment to ensuring that clients of all needs and preferences have equitable access to high-quality advice. It also respects client autonomy and individuality, recognizing that one client may prefer quarterly in-person reviews, while another wants short, regular video calls integrated with a digital portal.
Australia may be a sophisticated market, but it still lags behind some international counterparts in certain technological areas. From David’s perspective, the United Kingdom’s strict privacy and information security laws—such as the General Data Protection Regulation (GDPR)—drove the rapid development of secure client portal technology. This, in turn, led many UK advisory practices to adopt “CRM-centric” architectures, where a practice’s central system (often Salesforce or Microsoft Dynamics) integrates seamlessly with its other tools.
Professionalism in the UK context is reflected in the near-universal adoption of secure communication channels—no more emailing sensitive documents or data. This raises the standard of confidentiality and indicates that advisors there have embraced robust systems to ensure they meet their ethical obligation to safeguard client information.
Meanwhile, in the United States, the sheer scale of the market—tens of thousands of advisory firms and millions of clients—creates an environment ripe for experimentation and niche tech solutions. The US introduced standardized data integration models early, forcing providers to adopt open architecture and real-time data sharing. While the result is often a more fragmented ecosystem, it also enables innovation at speed. Advisors can mix and match solutions, building a “tech stack” that perfectly suits their niche or practice model.
However, from the standpoint of ethics, with every new piece of technology comes responsibility. If data is traveling between different clouds and providers, advisors and firms must ensure compliance with relevant privacy and cybersecurity standards. Ensuring robust protective measures, vendor due diligence, and staff training is essential—no matter how large or small the firm.
Despite overseas models, Australia’s market is comparatively small, with around 15,000 registered advisors. Historically, some incumbents have had little incentive to innovate quickly, particularly when they already command large market shares. At the same time, many advisory practices operate with tight margins and may be reluctant to invest in new technology. The net effect has been slower adoption and development of integrated tools that could simplify the advisor’s workflow and enhance the client’s user experience.
Nevertheless, the tide is turning. Advisors, platform providers, and third-party vendors increasingly recognize the necessity of “open architecture”—a concept that David strongly advocates. In an open-architecture ecosystem, any external application can integrate with a platform’s core functionalities. This is pivotal in breaking down data silos, reducing administrative burdens, and ensuring clients receive timely updates without an advisor having to re-key data across multiple systems.
For some larger firms, building a proprietary system in-house can be advantageous. Brett notes that Viridian Advisory chose to develop its own mobile app, “Vic,” to help clients stay connected and allow advisors to see real-time changes in client data. For instance, if a client updates personal information in the app, the system immediately flags it to the advisor, prompting a timely conversation rather than waiting for a scheduled annual review.
However, the “build vs. buy” dilemma is complex. Smaller firms, or those lacking capital and in-house developer talent, may find a more practical route in partnering with or purchasing from established providers. What matters most, ethically and professionally, is that the chosen technology meets data security standards, addresses the firm’s core business needs, and enhances—not complicates—the client experience.
With large-scale data breaches frequently making headlines, one cannot overstate the importance of cybersecurity in financial services. Advisors handle some of the most sensitive details of clients’ lives, from medical histories and family relationships to net worth and retirement assets. The ethical responsibility to protect that data, abide by confidentiality agreements, and maintain integrity cannot be overstated.
Brett underscores the danger by referencing mock drills that simulate a cyber incident. The conclusion was chillingly clear: “It will kill your business, instantly.” A robust cybersecurity strategy is therefore not optional. It must be woven into the fabric of the organization, from daily processes to staff training, all the way up to executive decision-making.
David and Brett both point to several actionable measures:
Embracing cybersecurity is both a professional and ethical duty, ensuring that client trust is preserved and that advisors fulfill their fundamental fiduciary obligations.
One common pitfall is to chase shiny new tools without having a clear strategic vision. Before purchasing or building solutions, advisors should define the client segments they serve, the engagement model they want, and the business objectives they aim to fulfill. David puts it succinctly:
“Take a step back, engage a third party (if needed), and design a great experience. It’s not going to evolve ad hoc.”
An advisor who tries to do everything alone, especially if they are a sole practitioner or part of a very small team, may find themselves overextended. Outsourcing or partnering for expertise in technology selection and user experience can be the more efficient and ethically sound choice—particularly if it ensures better compliance, client data protection, and alignment with legal obligations.
Budgets vary significantly from one advisory practice to another. Nonetheless, the guiding question is always: “How will this technology improve service quality, efficiency, or both?” Brett advises matching the investment in technology to a firm’s strategic aims. Is it about expanding the client base, finding back-office efficiencies, or improving client retention? Each objective justifies a different scope and a different cost.
Ethics plays a subtle but important role in budgeting as well. Cutting corners on security or client-facing interfaces to save money can lead to reputational risks and breaches of trust. A thorough budgeting process ensures that technology solutions are not only functional and beneficial but also meet the ethical standards that clients rightfully expect.
A 2023 CFS study revealed that one in three Australians who have never received financial advice cannot articulate a single benefit they might gain from it. Both David and Brett expressed dismay at this finding, viewing it as a failure of industry-wide communication. Brett notes that negative media coverage during high-profile inquiries—such as the Royal Commission—may have overshadowed the good that professional advisors regularly deliver.
This points to an important ethical and professional challenge: How do advisors demonstrate their value to those who have no prior experience of it? In truth, professional financial advice often leads to improved investment outcomes, better protection against unforeseen events, and deeper understanding of retirement and estate strategies. Yet if the market fails to communicate these benefits effectively, potential clients may never seek help.
To close this gap, the sector must invest in broader financial literacy campaigns, harnessing professional advisors’ expertise to explain how advice can shape long-term well-being. Platforms, licensees, and individual advisors can collaborate to:
In championing the core tenets of ethics—beneficence, truthfulness, and respect for client autonomy—advisors should strive to speak plainly and show prospective clients the pathways to improved outcomes.
The current regulatory regime in Australia can make providing low-touch or single-need advice prohibitively expensive for both advisors and clients. Brett points out that if it costs thousands of dollars to deliver a formal Statement of Advice, it becomes impossible to serve those with simpler, lower-value queries (e.g., “Should I put $1,000 into my super to get a government co-contribution?”).
This dilemma links directly to ethics. Fiduciary duty requires that advisors place client interests first, but the rules surrounding the distribution and scope of advice can hamper service for people with less complex needs. If the industry cannot find ways—through technology, streamlined compliance processes, or flexible regulatory changes—to scale down the cost, a significant portion of the population remains underserved. This exacerbates the wealth gap and undermines the principle of fairness.
Technology may hold the key to bridging this accessibility gap. By automating the back-office tasks, from data collection to standardizing compliance documents, advisors could serve a broader client pool at a lower cost. David notes that global partnerships are likely crucial, as the development of large-scale artificial intelligence (AI) tools or advanced data analytics may require significant capital and specialized expertise.
At the same time, every new step forward in automation or AI raises ethical considerations:
Professionals must remain vigilant to uphold ethical standards—maintaining the human element and personal accountability that lie at the heart of fiduciary relationships.
Financial advice stands at a crossroads. Clients demand personalization, transparency, and immediacy. Advisors, in turn, seek ways to serve more people efficiently and effectively. Technology is not just a nice-to-have but an essential enabler that allows practices to scale, reduces paperwork, and delivers timely, relevant insights.
Yet, as David Pritchard and Brett Arnold stress, technology must be approached with careful planning and strong ethical oversight. Whether it’s adopting robust cybersecurity protocols, designing client portals that respect user preferences, or deploying AI to analyze data, advisors must continuously ask themselves: “How does this uphold or even enhance our professional obligations to clients?”
By focusing on these core principles, today’s advisors can demonstrate not just the capabilities of new digital tools but also the immense value of professional advice. As the CFS Empowered Australian Report shows, a large segment of the population remains unconvinced of financial advice’s merits, a finding that underscores the need for renewed educational efforts and consistent displays of high ethical standards.
The path forward involves collaboration among platform providers, licensees, third-party technology vendors, and individual practices. Together, they can adopt open architecture, global best practices, and a willingness to learn from international models. Whether you are an advisor running a lean operation in a local community or part of a large national firm, the objective remains the same: deliver advice that is truly beneficial, ethically sound, and accessible in a digital-first world.
In short, the modernization of financial advice is about more than simply automating processes. It is about creating a richer, more inclusive profession—one that is capable of engaging a wide range of clients through multiple channels, all while steadfastly upholding the principles of professionalism and ethics. As David Pritchard succinctly puts it, the challenge is to create “an efficient advice business that delivers a great client experience.” And as Brett Arnold reminds us, technology must always serve that greater cause, ensuring “one size fits one” by meeting each client’s unique situation and preferences.
The future may be complex, but by merging innovative technologies with a foundational commitment to client well-being, today’s advisors can help reshape the landscape for the better. In so doing, they will not only validate the profession in the eyes of a skeptical public but also open the door to delivering high-caliber, life-changing advice to more Australians than ever before—securely, ethically, and efficiently.
Accreditation Points Allocation:
0.10 Technical Competence
0.10 Client Care and Practice
0.10 Professionalism and Ethics
0.30 Total CPD Points