Your IndustryMay 17 2016

Robo advice: the good, bad and the ugly

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      CPD
      Approx.30min
      Robo advice: the good, bad and the ugly

      But face-to-face financial advice, viewed in the UK as the ‘gold standard’, is still so far in advance of what robo-advice is currently capable of that it is unlikely any robo-advice firm would seek to compare costings with full advice at this moment in time.

      Adopting Robo-advice

      Robo-advice is still within its infancy here in the UK and while the technology can pose challenges, there are some exciting examples of how advisers are adopting robo-advice alongside their existing offerings.

      Whether it be through white labelling or using a software provider, advised or non-advised services, there is certainly no shortage of options available to advisers. The combination of an automated service with elements of human interaction also provides an opportunity for an adviser business to bridge the gap between full advice and robo.

      Interestingly, traditional providers in the US who are able to offer this balanced approach between a robo-adviser and face-to-face advice are actually proving more popular than robo-advice, despite the rapid growth of robo technology.

      For the adviser who is willing to embrace robo-advice, the technology could undoubtedly free up time to service those clients who really need the personal interaction as well as being a potential source of good quality, qualified leads and referrals.

      At the same time, there will always be a place for human interaction in the advice market - without it the quality of service would be greatly compromised.

      This is where advisers have a real advantage, with the expertise and experience to offer a truly omni-channel approach.

      David Thompson is managing director of marketing and proposition for Axa Wealth

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