I saw some interesting statistics in a recent communication from Platforum, relating to how robo advice is evolving to increase its commercial viability. The statistics, taken from Platforum’s European Consumer Insights report, reveal that just 18% of European investors are open to using pure robo advice yet almost three times as many would use it if some sort of human advice is also available.
This comes as no surprise. We developed our automated advice specifically to give financial advisers and planners the tools to offer a direct investment route that sits alongside their existing businesses, opening up opportunities to connect with people who may not currently have the resources that require a full financial advice service but who want the safety net of human advice as and when they need it.
Signing up to invest money via a digital route is quick and convenient and certainly has a place in the evolving investment landscape. Underpinning such a service with qualified professionals who can step in when it’s necessary offers investors the best of both worlds and, if the Platforum research is a good indicator, it looks like the route to digital investment success for the industry.In its recent communication, Platforum raises the fact that the FCA has been summoned by the UK parliament’s Work and Pensions Committee to review and compare consumer outcomes from face-to-face and automated advice. Platforum speculates that this may lead to some level of mandatory human involvement and it will be interesting to see if this happens. If it does, advisers using automated advice will find themselves firmly in the sweet spot.