According to research by Schroders, just 9% of South African households currently use a financial adviser. In a country where savings rates are too low and many people are unable to retire comfortably, the financial services industry needs to cast the net wider.
The good news is that technology enables us with the tools to do just that. I believe we are heading into what I call the financial wellness ecosystem — a blend of AI-driven personalisation, purpose-driven investing and, most importantly, empathy.
The impetus behind this is a new generation of investors. Young South Africans are digitally savvy and immersed in technology. They are also more socially conscious, demanding environmentally friendly options and investments that promote social good.
The digital acceleration during and after the Covid-19 pandemic fundamentally changed client expectations. Digitally enabled platforms came to the forefront of how people engage and how institutions serviced clients. This fuelled the adoption of technology, which is now the norm.
The result is that investors want to interact with their advisers online and have the simplicity of transacting digitally. This not only offers the potential to attract more investors but also allows advisers to be more productive and have a wider reach.
It is about seeing someone’s financial health as part of their overall wellbeing, where money enables a healthier, more fulfilling life
Technology should empower advice and not strip away its uniqueness. It should enhance engagement with clients to provide holistic solutions that focus on financial wellness — a much broader idea than just selling products, but creating client lifetime value. It is about seeing someone’s financial health as part of their overall wellbeing, where money enables a healthier, more fulfilling life.
For an industry where trust is currency — the combination of trust and empathy, together with relationship-driven care, should always be a considered and timeless principle that only human advisers can deliver. Advisers who understand a client’s life journey, goals, aspirations and fears will naturally transition into financial life coaches or architects who help investors stay the course.
Automating low-value processes such as reporting, onboarding and compliance frees up capacity for deep, human conversations. However, this should empower, and not dilute the ability to build trust.
Adoption of a dual skill set is now a real necessity. Financial acumen will need to be supported by digital literacy. The industry has to fully embrace the need to upskill in AI ethics, data protection and digital engagement to deliver on expectations and protect clients.
Another consideration is advice succession. This is just as critical and should rank high as a strategic imperative. Diverse talent pools must be considered to maintain relevance in a consumer base that is evolving demographically and will continue to do so. Future proofing for strategic continuity considers succession planning to ensure uninterrupted, value-aligned guidance long after the original adviser steps away.
Those who embed financial literacy, empathy and continuity into their practices today will remain indispensable in a decade where trust and human connection are the ultimate differentiators, even as technology changes how we engage.
In a nutshell, client expectations are changing. Financial conversations must be simplified, personalised and extended holistically to cover the needs of a client’s entire life journey. No matter how digital or data-driven life becomes, the essence of advice is human. It is a trusted guide that “walks” with clients through uncertainty, helping them grow and protect what matters most.
• Maharaj is CEO of insurance & asset management at Standard Bank Group
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