Tech Talk: February 2025 – What Advisers Need to Know

It’s been a busy month in the fintech space! From cutting-edge AI tools to some big regulatory and tech developments that could impact your day-to-day work, here’s what’s been happening and what it means for financial advisers.

AI in Advice: Hype or a Real Game-Changer?

AdvisoryAI has recently launched its second AI assistant, Evie, designed to streamline “the most time-consuming aspects of the financial advisory process.” Evie can update customer relationship management (CRM) systems, eliminating the need for manual data entry, and also automates meeting transcriptions and summaries, making it easier to stay on top of client interactions without the usual admin burden. Read more here.

But let’s be real—while AI has potential, many advisers are still figuring out where it fits. Our recent LinkedIn poll on client meeting notes showed that a huge 42% of advisers still rely on pen and paper, despite the availability of transcription and AI-powered tools. Meanwhile, just 11% record and transcribe meetings every time. This tells us there’s still a gap between the AI solutions being marketed and what advisers are actually comfortable using. So, is AI truly making your life easier, or is it just another layer of complexity? If you’re still sticking to traditional methods, what’s stopping you from embracing AI-driven solutions?

DeepSeek: The AI Model That’s Raising Eyebrows

A new AI model called DeepSeek has been making waves in the AI space. Developed by a Chinese research team, DeepSeek is an open-source large language model (LLM) designed to rival ChatGPT. While both models generate human-like responses, DeepSeek was developed in record time and at a fraction of the cost, raising concerns about the quality of its training data and security risks. For financial advisers, the key takeaway is that not all AI models are created equal. While ChatGPT has undergone rigorous testing and compliance reviews, DeepSeek’s rapid release raises questions about data security, reliability, and ethical considerations. If you're considering integrating AI into your practice, make sure any tool you use meets compliance requirements, safeguards client data, and aligns with FCA guidelines. The last thing you want is to rely on an AI that hasn’t been stress-tested for accuracy in financial planning. Read more here.

Letters of Authority: Why Are Providers Making Life Harder?

In a move that’s frustrating many in the industry, some providers are refusing to speak with adviser admin staff—even when they have a signed Letter of Authority (LoA). This is making it harder to get client requests processed efficiently. For many firms, admin staff are the backbone of smooth client service, and this kind of red tape only slows things down.

The issue isn’t new, but it seems to be getting worse. Some providers claim security concerns or regulatory requirements prevent them from engaging with non-advisers, while others simply don’t have the internal processes to handle LoAs efficiently. This leads to delays in transferring client information, increased workloads for advisers, and unnecessary frustration for both firms and clients.

Recognising these challenges, The Pension Lab has launched the Fix LoA Action Group (FLAG), a collaborative initiative aimed at overhauling the LoA process. FLAG seeks to bring together industry stakeholders—including providers, advisers, paraplanners, and others—to streamline and improve the LoA process. The goal is to make LoA processing as simple and transparent as Open Banking.

Paraplanners, advisers, and admin teams—how is your firm handling these roadblocks? Have you found any workarounds, or are you simply forced to wait? Let’s keep this conversation going and push for real change. Read more here

The UK's Potential Leadership in Asset Tokenisation

The UK is in a strong position to lead the global market in asset tokenisation, a revolutionary use of blockchain technology to digitise ownership of traditional assets. Tokenisation allows for fractional ownership of everything from property to fine art, opening new investment opportunities. However, while the U.S. has been focusing heavily on cryptocurrency, the UK has the opportunity to dominate the tokenisation space, offering a more accessible and secure market for investors.

Yet, there’s a significant lag in the UK’s regulatory framework for digital securities. Industry experts argue that stronger government leadership and clear regulatory guidance are needed to ensure the UK doesn’t fall behind other global financial hubs like Singapore or Luxembourg. Asset tokenisation could reshape capital markets, increase liquidity, and provide new opportunities for both advisers and clients.

If you’re advising clients on alternative investments or looking to diversify portfolios, this emerging trend could be a key area to watch. Read more here.

Final Thoughts

The takeaway this month? AI adoption in advice is happening, but advisers are still hesitant about fully integrating it. The LoA process continues to cause frustration, but efforts are underway to make it smoother. The UK’s potential in asset tokenisation could be a game-changer for advisers looking to offer new investment opportunities.

At We Complement, we’re here to help advisers navigate the evolving tech landscape with solutions designed to improve productivity, simplify compliance, and provide valuable support to both clients and teams. Whether it’s helping you get the most out of AI tools, streamlining admin, or staying on top of regulatory changes, we’re here to make tech work for you.

Until next time,

Amy North