Fears that robo-advice will effectively end the job of many financial advisers are “overblown”, it is claimed after research showed many people would still prefer a face-to-face consultation about their finances.
True Potential, a financial services and technology organisation, found that of those seeking financial advice, 61% of 16,000 consumers surveyed would choose face-to-face professional advice compared to 32% who would opt for a digital advisory service.
Advisers themselves also think their role will become more important, despite the rise of robo-advice.
True Potential found that 80% of 800 financial advisers polled at its recent conference in Manchester, England, were not fearful of robo-advice and expect clients to want a combination of digital services and face-face advice.
“Fears that robo-advice could signal the end of face-to-face advice are overblown. Instead, what will emerge is a hybrid model where clients want the best of both worlds,” said Daniel Harrison, senior partner at True Potential.
However, the under-35s are more likely to turn to digital services for advice, says True Potential, adding that of the 16,000 consumers surveyed, more than 90% of 16-24 year olds owned a smartphone, meaning “advisers must make sure they can capture tomorrow’s clients”.
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