Robo-advice threat is a race against time RSS icon

Written by Jonathan Warren on 07 August 2018

Feature first seen in Professional Adviser on 07/08/2018

Concerns about robo-advice are lapsing amongst financial advisers, but financial service providers should not entirely dismiss the risks posed by robo. Whilst the willingness of customers to invest through robo-advisers is currently outweighed by a preference for human interaction during the digital advice process, the projected growth rate of fourth industrial revolution technology is cause for vigilance.

A number of macro factors, such as the inter-generational wealth transfer to a generation more actively engaged with automation, and the extensive evolution of technological capability, risks reducing human input in advice in as little as a decade. Financial services firms should be prepared for distinctive changes in the everyday life when these technologies are operating at their peak.

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