Platform provider SEI has said it is working with a number of its clients on a ‘robo-advice’ proposition, which will be launched towards the end of the year.
Andrew Booker, head of sales at SEI, said the clients his company were working with represented different parts of the industry, but added he could not reveal who they were.
He said: “We predict that a lot of firms will start to think about the robo-advice model and whether that could be the answer to service the needs of clients who cannot afford face-to-face advice.
“This model could evolve over the life cycle, and in terms of enabling our underlying clients – that’s where we are investing heavily. Some clients will go ahead with that towards the end of this year.”
He added that the proposition would allow investors to execute transactions, view their transactions and see commentary. It would also make use of mobile apps to deliver its service to investors.
Mr Booker said the prospect of some clients using robo-advice should not be of concern to advisers, and added: “We see it as a complementary service, because clients can use the front-end service as a trigger for more advice.
“Our clients who have embraced it see it as something that will strengthen the underlying relationship with their investors.”
Addressing the issue of the Treasury’s Financial Advice Market Review, aimed at looking into how technology can help plug the advice gap, Mr Booker said he did not have a long wishlist of changes he wanted to see in next year’s Budget.
He said: “The barriers towards more effective use of technology are oftentimes in the mind rather than in the actual regulations.”
The SEI Wealth Platform provides outsourced investment processing technology for wealth management and advice firms including Towry, Tilney Bestinvest, and Brewin Dolphin.
Mr Booker added that SEI had some new clients in the pipeline, to be announced in 2016.
Adviser view
Dan Farrow, director of Essex-based SBN Wealth Management, said: “There will always be a market for face-to-face financial advice.
“I don’t see robo-advice as a threat. I see it as something that potentially addresses a certain type of client’s needs.”
