MM View: The Big Tech monster is coming for you – but only if you let it – Money Marketing

Michael Klimes Illustration by Dan Murrell

We love the cover images created each month by our art editor, Leon Parks, for the print magazine. But this time Leon has excelled himself. The dark wolf with demonic eyes, staring at the reader, is so arresting.

After you have dragged your own eyes away from those of the wolf, there are the little details to savour, such as the person with a bow whom the wolf seems to be hunting; or is it the other way around? Also, what about all that orange mist perhaps smoke between the two protagonists?

One thing these firms are very good at is providing innovative, efficient products and services

The cover image is so good you might not have felt like turning the page to discover what was in the rest of the magazine. If you did, and are reading my words here, I thank you.

The prose in the cover story, by chief reporter Lois Vallely, is equal to Leons artistic vision.

Their combined work makes editing become a joy, and Lois has produced a fine piece on whether Big Tech is a threat to advisers. Its a skilfully told story whose ultimate direction is hard to determine.

On one hand, there are the clunky platform behemoths that go back some years.

Advisers know their names and histories well. They cost tremendous amounts of money and generated huge expectations, but fell short of the mark.

Using AI should enable advisers to focus on what is most important in the long run: serving clients with a human touch

On the other hand, there is what comes under the label of Big Tech: Amazon, Apple, Facebook and Google. These giants are not associated with financial advice but they could make inroads to the sector due to their financial firepower, datasets and tech nous.

Lois mentions the fact the Financial Conduct Authority believes Big Tech firms could bring benefits to consumers of retail financial services by competing with incumbent providers. One thing these firms are very good at is providing innovative, efficient products and services.

Conversely, there are risks they could get a stranglehold on financial services in the same way they have in other sectors. The Big Tech giants have been criticised by both consumer advocates and politicians for exploiting their market dominance.

Big Tech could make inroads to the sector due to their financial firepower, datasets and tech nous

The best scenario, which Lois outlines, is that something like artificial intelligence (AI) comes in to complement what advisers do. This should enable them to focus on what is most important in the long run: serving clients with a human touch.

We will be covering the same theme of Big Tech and financial advice at MMI Leeds on Thursday 11 May, with Dr Liza Lovdahl Gormsen, a senior adviser to the FCA on the subject. She is our closing speaker and will give us the regulators view.

In other news, I managed to do some writing for the magazine, having conducted MM Meets with M&G Wealth managing director David Montgomery. Enjoy!

Michael Klimes is acting editor. Contact him at: michael.klimes@moneymarketing.co.uk

This article featured in the May 2023 edition of MM.

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MM View: The Big Tech monster is coming for you - but only if you let it - Money Marketing