Nearly four out of 10 brokers (38%) see the rise of robo-advice as the biggest threat to their business in the next three years, research from Legal & General Mortgage Club has shown.
This latest figure marks a jump of 3% since Legal & General first asked brokers the same question six months ago.
Legal & General research also showed that 87% of brokers expect to diversify their business in the next 12 months by adding in new products, services or technology.
A slightly larger number (88%) feel that they will need to invest in new or additional technology in order to remain competitive over the next two years.
As part of its recent Mortgage Club Live Conference, Legal & General asked brokers to share their views on the future challenges and threats to their business over the next three years. After the threat of robo-advice, 24% of brokers were concerned about other lenders, closely followed by 21% of brokers who saw customer behaviour as the biggest threat to their business.
Jeremy Duncombe, director, Legal & General Mortgage Club, said: “The rise in technology for brokers is an exciting opportunity for our market to further develop and meet the changing needs of our customers. Brokers obviously have to be aware of the challenges that lie ahead in this regard, but they must also use technology to adapt and diversify their business in order to futureproof themselves.
“Rather than viewing developments like robo- advice as a threat, advisers should look at how new technology can help them to stay one step ahead of the competition. Above all else, brokers must ensure that they are using every tool available to provide a modern, holistic service that meets the requirements of their customers throughout all aspects of the market, whether that be for mortgages, remortgages, second charge or buy-to-let products.”