Standard Life Aberdeen is to launch a robo-adviser as it looks to improve the advice process through technology.
The new firm, which has been logged with Companies House under the name ‘Standard Life Digital Solutions’ will be part of the company’s national advice arm, 1825 Financial Planning.
In a statement, SLA said its vision was to offer a combination of digital, telephony and face-to face-advice.
"With 1825, we’re building a national financial planning business with a high quality face-to-face capability and we’re also looking to develop a digital capability to provide planning and advice in areas of the market where people don’t already have easy access to advice," it stated.
"It makes sense to form this new company as we continue to look at how we can improve the advice process through digitalisation."
Robo-advice typically involves the use of algorithms to manage and allocate a client’s assets.
The use of technology has been advocated by the regulator as a way to serve clients with less assets and help close the so-called advice gap.
1825, which was launched by Standard Life in 2015, was among the businesses taking part in the latest cohort of the Financial Conduct Authority's regulatory sandbox last year.
It said at the time it wanted to test an automated advice service for those who are close to retirement.
In November 1825 struck a deal to deliver a financial education programme to the staff of pensions and risk consultancy Hymans Robertson.
Peter Magliocco, chartered financial planner at Wingate Financial Planning, agreed robo-advice made it convenient to service simpler advice needs, but he did not think the technology was at a stage where it could deal with more complex investment needs.
He said: "Robo-advice is a streamlined approach more suited to people starting out and building their investments and pots.
"They may be looking to invest in straightforward lifetime Isas or more simple wrapping products. There is certainly a place for it, and the costs can be quite low.
"However, if you look at pensions, although this area is meant to be getting more simplified, we’ve not seen this. It’s getting more complicated.
"If robo-advice can cater to these types of complex products, then I guess we will be made redundant. But I don’t see that happening for some time yet."
Dippy Singh is a freelance reporter for FTAdviser
