Firms must embrace technology at a much faster rate if financial advice is to become affordable, the founder of a new online Financial Planning firm says.

Guy Myles, who launched Flying Colours earlier this year, said businesses must show innovation, following the Financial Advice Market Review.

Mr Myles, a co-founder of Octopus Investments, said Flying Colours would be the “next generation of advice and investment management”.

He told FPT: “For lots of people, the cost of financial advice is prohibitive. Therefore, when you reduce costs yet still offer professional, regulated, whole of market advice from a human adviser, this can only be a step in the right direction.

“In order to truly provide accessible financial advice at affordable levels, companies will need to embrace technology at a much faster rate. The industry has to find a way of reducing costs without compromising on customer service.”

He said: “The online Financial Planning market will become increasingly competitive. The advice gap still exists today, and the recommendations of the recent Financial Advice Market Review are clear; it’s up to innovative businesses to deliver solutions that will close it.

“It can only be closed by growing the number of consumer choices available for top quality, regulated financial advice, in a low cost format. This invites newer entrepreneurial companies to use technology to offer high quality personalised advice, as well as investment solutions, in a more efficient way.”

He insisted his firm was not a robo-adviser and stressed the importance it places on a professional adviser being involved in the process.

He said it was “vital that technology is combined with personalised whole of market independent financial advice from a human”.

He said: “We believe we are the first company that has successfully utilised technology throughout the client journey with human financial advice to produce a solution which is affordable and accessible to all.”

Mr Myles aims to have attracted 10,000 clients to his new business within 5 years.

He said: “We want to increase the demand for Financial Planning and help change how people see investing in the UK. Fully utilising online technology throughout the client journey will work towards producing a solution which is affordable and accessible to all.”