Five factors set to disrupt the financial advice business

• Market volatility and geopolitical risks are testing investor confidence, with 65% of Australian advisers saying clients want to hold more cash.
• Australian advice businesses remain heavily weighted toward an older client base, with nearly 46% of clients aged 62–80.
• 58% Australian advisers aged 55+ do not have a documented succession plan.

Australia’s financial advice sector is entering a period of significant disruption. Against a fragile macroeconomic backdrop marked by conflict in the Middle East, global energy shocks, geopolitical realignment and interest rate uncertainty, five key forces are set to reshape Australia’s financial advice industry: keeping clients invested through volatility, finding efficiencies through AI, digitalisation, an ageing client base and an ageing adviser workforce.

New research from Natixis Investment Managers (Natixis IM), conducted in collaboration with CoreData, surveyed 2,950 financial professionals across 23 countries, including Australia, to examine the challenges advisers are facing, evolving client needs, and how firms are adapting to compete and grow.

Despite these pressures, advisers remain optimistic. Australian advice businesses reported AUM growth of 14.4% over the past year and expect a further 13.8% in the year ahead. But growth is no longer driven by investment performance alone – advisers must also demonstrate value beyond asset allocation.

The five factors 

1. Adapting to a changing client base

Australian advice books remain heavily skewed towards older clients. Baby Boomers (or older) account for more than half (52.7%) of clients, while younger investors remain underrepresented, with Millennials making up 12.5% and Generation Z just 2.4%, compared with 25.7% and 11% globally. As older clients move from accumulation to drawdown, advisers know they need new strategies to attract younger investors. Around 34% are integrating digital tools into their offering, more than half (53%) are adding AI capabilities to their practice, and 28% are using social media to reach younger audiences.

2. Younger clients. Younger advisers

The industry is also facing its own demographic shift, with an ageing adviser population raising succession and talent concerns. In Australia, only 42% of advisers aged 55 and over have a documented succession plan, while 28% say their firm is struggling to hire younger advisers. Despite this, only 26% of Australian advisers under the age of 55 have a documented succession plan in place to take over a retiring adviser’s business, compared with 50% globally. At the same time, the transition presents an opportunity, with 88% of advisers viewing the wave of retirements as a chance to grow assets. Realising that opportunity, however, will depend on effective succession planning, talent development and continuity for clients during periods of change.

3. Digitalisation is changing advisers’ competition base

While AI may strengthen adviser capabilities, increasingly sophisticated digital tools are also emerging as a competitive threat. Today, 71% of Australian advisers still view other advisers as their primary competition. Over the next five years, however, that is expected to shift, with 49% predicting self-directed investment tools and AI will become their biggest competitors. The change reflects evolving investor preferences, particularly among younger cohorts who are more comfortable with digital-first advice models. Even so, capability gaps remain, with 63% of advisers acknowledging they lack the digital capabilities needed to compete effectively.

4. Finding opportunities and efficiencies in Artificial Intelligence (AI)

Of all the disruptions facing advisers, artificial intelligence may have the greatest impact on both client portfolios and advisory practices. Few advisers expect AI-driven market momentum to fade anytime soon. In fact, more than four in five (82%) believe the AI trade still has a long way to run, while 73% think AI has the potential to shape markets for the next 20 years.

Within their own businesses, AI adoption is also accelerating, with 67% of advisers already using the technology in their practice. Overall, 85% say AI can free up more time to spend with clients, while 74% are using it to write emails, take meeting notes and distribute educational materials.

However, 65% say integrating AI into existing workflows has been more challenging than expected.

5. Keeping clients invested in uncertain times

As advisers respond to the current pace of change, retaining existing assets is becoming a central challenge. In Australia, 65% of advisers say clients are holding more cash in response to uncertainty, reflecting heightened sensitivity to geopolitical risks and market volatility. This environment is also driving behavioural missteps: 77% say investors are reacting emotionally to headlines, 65% say clients are trying to time the market or chase returns, and 47% point to unrealistic return expectations.

With 84% of advisers identifying geopolitical uncertainty as a major risk, keeping clients invested through periods of volatility is becoming a critical lever for maintaining and growing assets under management.

Explore the full report

The Natixis 2026 Global Survey of Financial Advisors captures insights from 2,950 professionals across 23 countries, providing a global view of how advisors are navigating uncertainty, adopting new technologies, and positioning for growth.

Download the report to explore deeper insights on:

• Managing investor behavior in volatile markets
• The evolving role of AI in portfolios and practices
• Competing in a digital-first advice landscape
• Winning the next generation of clients
• Planning for succession and long-term business growth