Strictly Business owner Tony Vidler says social media is likely to be one of three major trends in technology for advisers.

He expects the other two for 2014 to be an increased use of electronic underwriting and what he calls “mastering mobile”.

Social media such as blogs and social networks offer a great opportunity to prospect for new clients without taking up great time and expense, he says.

The principle is the same as traditional prospecting, Vidler says, but with bigger numbers. 

A person who traditionally would have referred an adviser to one or two people could now refer them to 100-200 via their social networks.

“Research from America shows that 90% of people don’t trust what they read in advertising.  However, more than 90% trust peer-to-peer recommendations.”

However, Advisers have been “very slow” to take up social media as tools for their businesses, Vidler says.

“The Johnny-Come-Latelys will be grappling with how to do that this year; their clients are already there.  Clients want to be talked to on the channels they are using.”

Vidler says the slow uptake by advisers is not due to demographics. The fastest-growing group on Facebook is women over 65.

“They key attribute for successful use of social media as a business medium is speed of thought.  Traditionally as a whole the industry has not been very innovative and speed of thought is the missing ingredient I think."

Industry commentator Clayton Coplestone expects to see advisers increasingly making use of technology to automate certain parts of their businesses.

Coplestone, director of Heathcote Investment Partners, says advisers need to focus on where they have a comparative advantage.

“Advisers need to figure out pretty quickly what they do well and what bits can be outsourced or automated,” he says. “It’s part of the journey I talk about for sole practitioners into being a business.  It’s a three to five-year process at best.”

Coplestone also sees changes on the way in administration, particularly in terms of platforms, where he expects to see competition coming from overseas players.