Advice Gap 2025 Report: Digital tools essential to close the advice gap

Commenting on The Lang Cat’s 2025 Advice Gap Report, Erin Sims, financial services senior analyst, RSM UK said: “The Advice Gap 2025 report highlights a paradox: while the vast majority of those who receive advice find it valuable, most consumers are deterred by cost, complexity or lack of trust, leading to 91% of adults not having paid for financial advice in the last 2 years.

“With regulatory pressures such as Consumer Duty prompting half of advisers surveyed to offboard clients, particularly those with modest assets, the need for scalable, tech-enabled solutions can seek to bridge this gap. The solution lies in embracing hybrid digital models, with the likes of robo-advice and targeted digital support bridging the gap for underserved consumers, especially younger individuals and those with simpler needs, who may be swayed by unregulated social media finfluencers.

“This isn’t necessarily about replacing human advisers, but about using technology to extend their reach, reduce delivery costs and build trust through transparency and accessibility. If we want to close the advice gap, we must stop treating digital as a threat and start seeing it as the key to inclusive financial wellbeing.  There also needs to be a regulatory environment that supports innovation, by enabling simplified advice models, clarifying the advice/guidance boundary, and reducing unnecessary compliance burdens for low-risk, low-cost advice scenarios.”