Robo-adviser Wealth Wizards has launched a new automated paraplanner tool to help firms provide retirement advice in less than two hours.
The tool automates at retirement advice with a fact find questionnaire which produces a suitability report.
Wealth Wizards said the tool generates a “regulated advice solution” made up of an annuity, drawdown or a blend of the two.
The report could then be edited by an adviser to make sure it suited the client’s needs.
Andrew Firth, chief executive of Wealth Wizards, said: “New technologies are changing our industry rapidly, and sophisticated automated advice will underpin and enable advisory firms to grow.
“The paraplanner is not only designed to improve the performance of advisory firms, but to also support advisers in a market where 500,000 individuals are retiring every year creating huge advice opportunities.
“Through the use of advanced algorithmic innovation and expert financial planners, Wealth Wizards has created retirement advice for the masses, which has the potential to create huge shifts in both the cost dynamics of the industry and the volume of people receiving advice.”
Wealth Wizards is majority owned by LV, which has been using the tool already as part of its telephone advice service.
The provider said it had reduced the average time it took to provide advice from around seven hours to around 90 minutes.
David Stevens, director of advice strategy at LV, said: “The Financial Advice Market Review recognised that for everyone to benefit from pension freedoms advice, it has to be made more affordable and accessible, and we wholly agree.
“Modernising the cost and consistency of advice through automation provides real opportunities for firms like LV to offer the benefits of advice to more customers, including those with smaller pots.
“For example, in conjunction with our corporate partners it opens up new possibilities for LV to develop high quality, lower cost advice solutions, for customers who need help accessing their workplace savings.”
Mr Stevens said that a non-qualified individual could take the client through the questionnaire before an adviser looked over the report.
He said that in theory a client could receive advice without an adviser but in practice customers like meeting an adviser face-to-face and that an adviser should check the solution proposed by the algorithm.