More than 70 companies are developing automated advice propositions, according to consultancy firm Altus.
Simon Bussy, a principal consultant for Altus, said the businesses looking to offer robo-advice ranged from small start-ups to large banks.
He said some of these companies are working with Altus, including two banks and some asset managers, platforms and smaller players.
But he expressed scepticism about whether any of these companies would come up with something innovative.
He said: “We believe that there are more than 70 organisations who are developing digital or automated-advice propositions along the value chain, from big banks to small start-ups.
“There is plenty of noise but so many of these are ‘me too’ propositions and are not offering anything different or exciting for the customer.
“I look at the linear ‘accumulation’ Isa and guaranteed investment account (GIA) propositions and I get bored.
“The end to end journey is no different from the risk assessment and stochastic modelling tools developed 15 or 20 years ago.”
Mr Bussy said there were a few businesses offering “something unique” and cited Wealth Wizards, which is majority owned by LV, as an example of this.
Wealth Wizards focuses on providing retirement income advice mainly online, but with the help of a human adviser if needed.
Mr Bussy said: “The retirement and savings landscape changed post-RDR and we are now seeing collaborations between big brands, who can bring a trusted name, existing customers, credibility and funding, and small, agile organisations who bring an agile approach, entrepreneurial thinking, and a burning desire to build smart solutions that can disrupt a market.
“Now is the time to re-imagine how we need to engage the customer, and not just re-engineer the same tired process. These collaborations could be a huge opportunity.”
He added advisers could find themselves battling it out with large technology companies.
Mr Bussy said: “My prediction is that robo-advice becomes part of a hub and isn’t restricted by industry boundaries.
“Think about WeChat in China and how it has become the ‘go to’ place for consumers looking for a range of solutions – from online shopping, digital payments, ordering a taxi, keeping up to date with media or celebrity blogs, to banking services and simple investments.
“This proposition is slowly being copied by Facebook Messenger. The challenge is: how do we create a proposition in the UK that is centred around the customer needs and how their lives are evolving, and not just around a financial services product?”
