Nearly five out of 10 brokers say robo-advice and technology will be their biggest threat in the next three years, says Legal & General Mortgage Club.
The club found 49 per cent of brokers agreed with the sentiment at its recent Mortgage Club Live event, up 11 per cent from a year ago.
Legal & General Mortgage Club director Jeremy Duncombe says: “Brokers might be in their strongest position for nearly a decade, but, as these figures show, many continue have concerns about the impact of robo-advice and the threat it might pose to the future of their business.
“However, instead of viewing technology as a threat, advisers should see it as an opportunity and an enabler to help them meet the changing needs of the market.”
The mortgage club also discovered that 22 per cent of brokers felt customer behaviour was the biggest challenge to their business.
Meanwhile, 20 per cent said non-industry disruptors were their main concern.
Lenders were cited as the biggest challenge to brokers by 9 per cent of those surveyed.
Legal & General also found that 83 per cent of brokers expect to diversify their business in the next 12 months through new products, services or technology.
Just 17 per cent of intermediaries did not expect to diversify over the next year.
Duncombe adds: “Whilst it is positive to see that more than three-quarters of brokers do plan to diversify and adapt their businesses, including with technology, as an industry we must encourage the rest to not shy away from technology, but instead use it to futureproof their businesses and make their propositions even more appropriate to the next wave of younger borrowers.”