Trust is moving: the future of hybrid advice

For decades, trust in financial advice has been shaped by familiar signals: the size of a brand, its track record, or a personal referral.

Those signals still matter. But they are increasingly being complemented by other forms of trust: transparency, accessibility, relevant education, and a clear client experience.

Clients are becoming more informed, more sceptical of superficial marketing, and more likely to research a financial decision before they ever speak with an adviser.  Increasingly, they are listening to podcasts, reading long-form content, asking questions in online communities, and seeking validation from sources they see as independent.

In New Zealand, that shift is already visible. The NZ Personal Finance subreddit attracts around 100,000 weekly visitors, while MoneyHub reaches tens of thousands of people each day and offers referrals to independent financial planners. As a result, more clients are walking through the door with a view already formed - sometimes seeking validation, sometimes wanting to challenge their thinking.

For advisers and fund providers alike, this points to an emerging opportunity: to make it easier for people to access clear information, understand the support available to them, and engage with advice at the point it is most useful.

As consumers become more sophisticated, the old bank teller model - 'would you like investments with that,' where advice appears bundled with the product being sold - may hold less appeal than it once did. That doesn't mean bundled advice disappears; it means preferences are shifting, and choice matters more.

Questions around value, incentives, and alignment are becoming more prominent. This is not necessarily a rejection of any particular model. Advice can be delivered in different ways, including fee-for-service arrangements, product-linked models, or a combination of both. What appears to matter most is that the model is understandable and that clients can see how the advice, products, fees, and incentives relate to their own objectives.

Transparency can help make that relationship clearer. It can support informed decisions, reduce uncertainty, and give clients more confidence in the process.

Digital investing tools have made it easier for more New Zealanders to access information and take action. For some people and some decisions, a self-directed approach may be appropriate. For others, the need for advice may become more apparent as circumstances become more complex.

That complexity can take many forms: an inheritance, a business sale, retirement planning, a separation, changing family priorities, or simply the need to make sense of competing financial decisions.

This is where hybrid advice may have an increasingly meaningful role.

Hybrid advice combines a digital foundation with human advice and specialist support when it is needed.

The Global Wealth and Asset Management 2022 report by Oliver Wyman and Morgan Stanley describes hybrid advice as a model sitting between fully digital and traditional high-touch advice. Clients can use digital tools for activities such as onboarding, account access, portfolio visibility, educational content, and straightforward transactions. They can then access advisers or specialists through channels such as phone, chat, video, or - in some cases - in person.

In practice, a hybrid model may include:

• A digital dashboard giving clients a clear view of their portfolio and financial information.
• Online education, investment content, and guidance to support simpler decisions.
• Digital workflows that reduce administration and create a more consistent client experience.
• Access to a pool of advisers or specialists for more complex questions.
• A smoother transition between self-directed activity and personalised advice as a client’s circumstances or needs change.

The central idea is not that technology replaces the adviser. Instead, technology can provide a useful base layer: reducing friction in routine processes, making information easier to access, and helping create continuity across channels. Human advice can then be concentrated where judgement, context, empathy, and professional expertise are most valuable.

At Kernel, we see the future of advice as an ecosystem:

• Self-directed investors supported by tools and guidance;
• Hybrid advice that blends digital capability with human connection; and
• Human advice for clients with more complex needs.

Trust has not disappeared. It is moving - from the name on the fund, to the transparency of the model, to the adviser who is genuinely in their client’s corner. We believe the advisers who combine genuine client advocacy with a great platform experience will be well placed to earn trust in the next decade.