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.
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