Robo-advice “not a threat” to traditional advisers

Automated services “do not pose an immediate threat” for traditional wealth managers, research suggests.

This is despite the fact that automated ways of financial planning, such as robo-advice, are becoming more prevalent in the UK market.

Verdict Financial, a market researcher, surveyed just over 100 UK firms, including robo-advisers and traditional wealth managers.

Nicole Douglas, a wealth management analyst at the firm, said: “Advisers are not likely to be replaced by robots in the near future. Our data shows 87% of wealth managers disagree with the statement that traditional wealth managers will lose market share to automated investment services – or robo-advisors – in the next 12 months.”

There is still demand for investments to be professionally managed, Douglas said because wealthy clients lack expertise and time.

However, wealth managers are themselves adopting digital capabilities in a supporting role for their businesses. The Verdit Financial data show that 67% of wealth managers agreed with the statement that investing in automated investment services can complement their existing offering.

©2016 funds europe

HAVE YOU READ?

THOUGHT LEADERSHIP

Innovative US companies are providing some of the solutions to the climate crisis and transition to a more sustainable economy. We see potential opportunities in areas including renewable energy and…
FIND OUT MORE
This white paper outlines key challenges impeding the growth of private markets and explores how technological innovation can provide solutions to unlock access to private market funds for a growing…
DOWNLOAD NOW

IRELAND SPOTLIGHT

Visit our dedicated Ireland channel for all the latest news and analysis on the country's investment industry.
READ MORE

PRIVATE MARKETS FUND ADMIN REPORT

Private_Markets_Fund_Admin_Report

LATEST PODCAST