Advice firms will need to embrace app technology to attract and retain the next generation of clients, but the opportunity is not limited to younger age groups.

We commissioned research from AdviserSoftware.com, a division of FTRC, to explore the potential for technology to broaden access to financial planning and open up new markets for advice firms.

The survey of 4,000 members of the public confirms expectations around the use of technology in the advice process and points to rapidly changing behaviours. Alongside meetings with their adviser, 62% would like to track their pensions, investments and progress against their financial goals on a mobile phone app.

Unsurprisingly, demand is strongest in the youngest cohort. Those aged 18-34 are digital natives and bring the same expectations to financial planning as to other areas of life. In this group, three in four want to track their investments and access personalised content via an app. That compares to almost two-thirds (65%) of 35-55s, along with just over a third (35%) of over 55s.

Clients by age group who want pension/investment/goal tracking on an app

Young people tend to lead the way in technology adoption, but older cohorts follow. In 2014, just 14% of over 65s in the UK owned smartphones, versus 88% of 16-24s and 84% of 25-34s. Over the past decade, the gap has narrowed dramatically, and today 82% of over 65s own the devices.

That suggests the opportunity, already strong today, will only grow and extend across age groups.

By gender, both male and female respondents were in favour of the use of app technology in the financial planning process, with men slightly in the lead. Close to two-thirds (65%) of men were keen to keep track of their finances via an app, compared with 58% of women.

Those in favour of using application technology in the financial planning process

There was also some regional variation, with respondents in major cities broadly showing more appetite to use an app to supplement the adviser relationship.

Results by income bracket make a persuasive case for advice firms to consider using apps with their clients. Among high earners (those in the £80,000 to £100,000 cohorts), the ability to gain quick access to pension, investment and goal tracking via an app is seen as particularly valuable.

Clients by income bracket who want pension/investment/goal tracking on an app

Importantly, apps are viewed as a complement to the human relationship that lies at the heart of the financial planning process. Across age groups, 62% want digital solutions and human interaction to work in tandem.

For firms seeking to demonstrate ongoing value in a consumer duty world, these findings are highly positive. Apps offer a powerful way for advice firms to connect with and support their clients outside the annual review cycle, while simplifying client communications and reducing the time and cost to serve. That clients across demographics are onboard suggests the time to investigate the possibilities for your business is now.

Find out what advisers are saying about supporting ongoing relationships with our client-facing app, Tram