When AMP announced its new advice strategy last month, including a significant cut in practice values, the news was met with anger and disappointment from a significant group of its advisers.

But unlike its main banking rivals, the group is not looking to sell off its advisory division; instead, it has set itself the challenging task of trying to serve more customers.

“It’s about more advice to more people in more ways,” AMP Group CEO Alex Wade told Investor Daily. “We need to fix the problem of insufficient advice for Australians.”

Research by Momentum Intelligence shows that 71 per cent of Australians who don't have a financial adviser don't really know what they're doing. There is a fundamental lack of awareness among the population about the value of councils. The royal commission, which received widespread media coverage, has not helped groups such as AMP or its 2,200-strong network of advisers.

The company has announced plans to invest half a billion dollars in its advice channel, including developing a digital offering that Wade says will support human interactions, rather than compete with them.

“I think there's a very big market for face-to-face. I think that will grow given that competitors are leaving,” he said.

“The problem with face-to-face advice is that it is becoming increasingly expensive given regulatory changes and compliance costs.

“AMP's strategy is that we double all tips when others leave. I think we need to focus on our face-to-face advisors who have compatible professional practices at the business level. We also need to solve the underlying problem with digital technology.

Mr Wade sees the digital advice element working effectively as a tool to engage the mass market – clients who cannot afford to pay a financial adviser a hefty annual fee. however

"It's going to be supported by phones, people still want to speak to a person, but I think for the mainstream Australian, people who still can't afford face-to-face advice, we need to solve the problem with digital technology." This digital channel will then send people up through the three levels to a phone or face-to-face.

“I think this will help our advisers, both employed and working, because they will be able to use our digital service for some of these clients who cannot afford face-to-face advice. For example, the children of their clients,” he said.

As service fees replace commissions, the natural tendency is for advisory practices to move up the market and begin serving wealthier clients who can actually afford the fees.

"All of this creates a problem for those who can't afford advice," Mr Wade said. "We're trying to counter that. We announced $500 million to invest in advice. A big part of that will be technology in practices, compatible in design to be as efficient as possible.”

No Australian company has successfully delivered a digital advice offering that has been adopted by the mass market. However, AMP believes it can do just that.

The company's brand has been hit hard by a series of scandals in recent years. His new advice strategy has sparked an ugly backlash from advisers who have already received termination letters. But that's only half the story.

The group recently raised $784 million from shareholders, much of which will be spent on its journey to bring a digital advice solution to market, while continuing to grow its network of chartered and aligned advisors. The company has been in the advice game for a long time. His new approach appears to be one that will use the power of digital channels to optimize face-to-face advice, rather than eradicate it.