About 4.3 million adults intend to conduct a financial activity without seeking professional advice in the next two years, according to new research by Investment Trends.

Activities will include purchasing life insurance, making changes to super and arranging their finances for retirement.

It is the first time the research house has investigated the direct client market. 

Investment Trends Head of Research for Wealth Management Recep Peker says although such consumers have questions about the financial activity they are undertaking, institutions are ready to provide the answers.

“Financial institutions seeking to holistically service clients’ need to help and guide them through their financial decision-making process by addressing the gaping information needs,” Mr Peker said.

“Banks and super funds must have a strong digital presence to capture these relationships, because the majority will turn to online sources for guidance.”

The research finds 1.5 million people would use robo-advice tools and 2.6 million would consider using tools that give a detailed recommendation on how to achieve their financial goals.

“Robo-advice tools can be a cost-effective method for banks and super funds to engage those who are not actively considering a financial adviser or cannot afford one,” he said.

“Most current-generation robo-advisers are focused on investment selection, but these tools have the opportunity to really flourish by helping Australians with more than that.”

Mr Peker says such tools can also trigger the desire to conduct a financial activity and influence which products and providers people select.

“Competition is likely to be intense in this space,” he said. “While banks have an advantage, 36% of people prefer their super fund to provide these tools.”