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IFAs remain resilient despite rise in robo-advice

Despite the rise in the use of robots as employees in the workplace, IFAs remain adamant that such technology will not replace their human face-to-face investment advice.

Although robots and automation are increasingly infiltrating the financial services industry, experts argue that there are certain matters which robot advice cannot be used for; robo-advice generally focuses on investments which relate more to saving money rather than providing advice. For the sale of financial final products, clients require face-to-face advice…

Additionally, robo-advisers lack the learning and experience which is picked up on the job while working in the marketplace. Robo-advisers also lack the ability to adapt to a client’s response and body-language during meetings…

However, there remains the argument that robo-advisers will save people money and may be appropriate for the absolute bare basic investor. The robo-advisers have proved that they are able to look at volatility in the market and allocate accordingly…

The conclusion appears to be that if people want to pay a low price they’ll choose the robots. Conversely, those wanting  a more detailed report will be willing to pay for a higher price and choose face-to-face advisers…

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About

Simon Bean is managing director of the Recruitment Connection and has been recruiting since 1985. He is a Fellow of the Institute of Recruitment Professionals (IRP).