By Paul Feeney, Founder and Chief Executive Officer, Otivo
Getting financial advice used to mean one thing, sitting down with an adviser in person. Today there's another route, digital advice delivered through technology, and the two aren't rivals so much as different tools for different jobs. Understanding what each does well helps you choose the right one for your situation, or use both. Here's how digital advice and a traditional financial adviser compare.
Digital advice is guidance delivered through technology, often more accessible and lower in cost, and well suited to specific, common financial questions. A traditional financial adviser offers personal, in-depth service suited to complex or holistic situations. As at July 2026, the two serve different needs, and many people use one, the other, or a combination depending on the question.
What's the difference between digital advice and a traditional adviser?
The core difference is how the advice is delivered. Digital advice uses technology to guide you through financial questions, often quickly and at any time, drawing on your inputs to produce tailored guidance. A traditional financial adviser provides advice through a personal relationship, meeting with you to understand your situation in depth. Both are forms of professional financial advice, and both have their place, the difference is in the format and the kind of support each is built to provide.
What are the strengths of digital advice?
Digital advice tends to be accessible, convenient and lower in cost, which makes financial guidance available to people who might not otherwise seek it. It's well suited to specific, common questions, such as whether salary sacrifice makes sense or how much cover you might need, and you can use it at a time that suits you. For clear, defined questions, digital advice offers a fast and affordable way to get tailored guidance, which is a genuine strength.
What are the strengths of a traditional financial adviser?
A traditional adviser offers depth and a personal relationship, which can be valuable for complex or interconnected situations. Where circumstances involve many moving parts, or where someone wants an ongoing relationship with a professional who knows their full situation, an adviser can provide comprehensive, tailored support. The personal understanding an adviser builds over time, and their ability to handle complexity and nuance, are real strengths for those whose needs call for that kind of service.
How do cost and accessibility compare?
They differ in ways that suit different needs. Digital advice is generally more accessible and lower in cost, which makes it a practical option for straightforward questions and for getting started. A traditional adviser typically provides a more comprehensive, personalised service, which reflects the depth of support involved. Neither is simply cheaper or better, they represent different levels of service for different needs, so the value depends on how well each matches the question you're trying to answer.
How do you choose, or combine the two?
The useful question is what your situation calls for. For specific, defined questions, or to build understanding and confidence, digital advice can be an efficient fit. For complex, multi-part circumstances, or where you want an ongoing personal relationship, a traditional adviser may suit better. The two can also work together, some people use digital advice for particular questions and an adviser for broader planning. Matching the type of advice to the complexity of your need is what makes the choice sensible.
Frequently asked questions
Is digital advice as good as a financial adviser?
They serve different needs rather than one being better. Digital advice suits specific, common questions and is accessible and lower in cost, while a traditional adviser suits complex, holistic situations needing depth and a personal relationship. Both have their place.
Is digital financial advice cheaper?
Digital advice is often more accessible and lower in cost, which suits straightforward questions and getting started, while a traditional adviser provides a more comprehensive, personalised service. The right value depends on the complexity of your needs.
Can I use both digital advice and an adviser?
Yes. Some people use digital advice for specific questions and to build confidence, and a traditional adviser for broader or more complex planning. Matching the type of advice to the need is what matters.
The right choice depends on the question you're trying to answer and how much depth it needs. Otivo is a licensed Australian digital financial advice platform holding AFSL and Australian Credit Licence No. 485665, offering tailored guidance on questions like super, contributions, insurance and debt. It's one way to get affordable, accessible advice for specific financial questions.
Sources
- ASIC MoneySmart — financial advice and its types — moneysmart.gov.au
Disclaimer
The information in this communication is current as at July 2026 and has been prepared by Otivo Pty Ltd ABN 47 602 457 732, AFSL and Australian Credit Licence No. 485665. This content is general information only and has been prepared without taking into account your objectives, financial situation or needs. It is not personal financial or taxation advice and should not be relied on as such. Before acting on any information, you should consider its appropriateness having regard to your personal circumstances. This material must not be reproduced in whole or in part, or posted on any social media platform, without the prior written consent of Otivo Pty Ltd.