Uptake of digital advice in New Zealand surged 90% in 2024-25, according to a Financial Markets Authority report.

About 164,774 retail clients received advice digitally, compared with 86,478 the previous year.

“This indicates a continued shift towards the use of digital advice facilities,” the authority said.

“The number of financial advice providers offering advice through digital facilities also increased by 21%, reflecting greater use of digital channels to reach and serve clients.”

The report, analysing regulatory returns, says the number of licensed financial advice providers increased 10% to 1553 and the pool of financial advisers grew 8.5% to 9197.

Life insurance remains the dominant product, with 824 financial advice providers offering guidance on trauma, income protection, term life, and total and permanent disability covers.

General insurance is fifth on the list, offered by 274 financial advice providers. Vehicle insurance leads by line, with 251 offering advice, followed by house and contents.

The number of complaints against financial advice providers fell to 40,646 from 43,565 in 2023-24.

FMA executive director of licensing and supervision Clare Bolingford says the annual report shows both an evolving market and emerging areas of focus.

“The continued growth in adviser numbers, alongside the rapid increase in the uptake of digital advice, shows how the sector is evolving,” she said.