SEARCH
Robo-advice only for small investments, research shows
Robo-advice only for small investments, research shows
Consumers are happy to use robo-advice, but only for investment that are less than £1,000, new research in the UK has revealed.
According to research by UK-based financial services organisation True Potential, 65 per cent of investors said they would use an automated tool for investments up to £1,000, or nearly AUD$2,000, before going to a professional adviser.
Less than 10 per cent said they would invest more than £5,000 with robo-advice, while 22 per cent said they consider the tools as "full replacements" to advisers, the research shows.
Despite an industry rush to roll out robo-advice services, True Potential believes a hybrid model will eventually emerge.
"Technology certainly has a big role in the future of personal financial management and advice, but we are not there yet. None of the technology on the market can truly be described as robo-advice, which would require very sophisticated artificial intelligence to work properly," said True Potential managing partner David Harrison.
"Technology enables consumers to make small investments where it would not make sense to go through an adviser."
Moreover, during True Potential's financial adviser conference in January, 80 per cent of advisers said they viewed robo-advice as an opportunity, not a threat.
"Robo-advice is not going to replace financial advisers any time soon. For larger investments, I think people will still want to talk to another human being and our research supports this," Mr Harrison said.
Subscribe to our Newsletter
We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians
Your email address will be shared with nestegg and subject to our Privacy Policy
latest articles
OUR PLATFORMS AND BRANDS
- Accountants Daily
- Accounting Times
- Adviser Innovation
- Australian Aviation
- Cyber Daily
- Defence Connect
- Fintech Business
- HR Leader
- Independent Financial Adviser
- Investment Center
- Investor Daily
- Lawyers Weekly
- Money Management
- Mortgage Business
- Nestegg
- Property Buzz
- Real Estate Business
- Smart Property Investment
- SMSF Adviser
- Space Connect
- Super Review
- The Adviser
- Wellness Daily
- Which Investment Property
- World of Aviation
EVENTS AND SUMMITS
- Accountants Daily 30 Under 30 Awards
- Adviser Innovation Summit
- Australian Accounting Awards
- Australian Aviation Awards
- Australian Broking Awards
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Space Awards
- Australian Space Summit
- Better Business Summit & Awards
- Corporate Counsel Summit & Awards
- Cyber Security Summit & Awards
- Defence Connect Budget Lunch
- Defence Connect DSR Summit
- Fund Manager of the Year Awards
- ifa Excellence Awards
- ifa Future Forum
- Investor Daily ESG Summit
- Lawyers Weekly 30 Under 30 Awards
- Lawyers Weekly Women in Law Forum
- Mortgage Business Awards
- New Broker Academy
- Partner of the Year Awards
- REB Awards
- Reinnovate
- SME Broker Bootcamp
- SMSF Adviser Technical Day
- Super Fund of the Year Awards
- Women in Finance Awards
- Women in Law Awards
- Accountants Daily Podcast Network
- The Adviser Podcast Network
- Australian Aviation Podcast Network
- Defence Connect Podcast Network
- HR Leader Podcast Network
- The ifa Show
- The Lawyers Weekly Show
- Mortgage Business Podcast Network
- REB Podcast Network
- Relative Return
- The Smart Property Investment Show
- Space Connect Podcast
PODCASTS
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
LINKS
STAY CONNECTED
Subscribe to the Adviser Innovation eNewsletter.
