If you’ve been following our recent Money Talks debates and blogs, you’ll already know that Robo-Advice is a topic that’s guaranteed to throw up some very strong opinions from those of us working in the financial services industry. Stated bluntly, these range from ‘it’s the way forward’ to ‘it’ll never work!’
Whichever side of the fence you’re on, one thing is certain: Robo-Advice will only take off big-time if the general public buys into the whole concept, and human customers become comfortable interacting with robot advisers.
Of course, this simply begs the question: “But will they?”
We wanted to find out. That’s why Money Talks commissioned a brand-new market research study, to find out precisely what financial services customers currently think about the concepts underpinning Robo-Advice.
The findings of the study are outlined in the brand-new Money Talks report: Robo-Advice: What Our Customers Really Think.
How the survey was structured
The study comprised an in-depth online survey, plus a series of 30-minute interviews to explore the subject in more depth.
We then cross-referenced the study’s findings with the Financial Advice Market Review (FAMR) report (commissioned jointly by the UK Treasury and the FCA), and our own recent Money Talks industry debate.
What we learnt
Firstly, we asked the customers’ about their general attitudes towards financial advice – and how much they thought they should pay for it. As you’ll see from the report, people who hadn’t used a professional adviser generally underestimated how much an IFA would (or should) charge – by a considerable amount.
We then asked them about using an automated advice service. Why and when they’d use one; and the reasons that they wouldn’t.
Whilst many respondents said they’d be happy, in principle, to use an automated advice service, their opinions and expectations were framed against a clear background of apprehension and mistrust of the FS sector in general.
And whilst this is an issue that extends far beyond the debate over Robo-Advice, it’s one that Robo-Advice must be careful to address if it is to be successful.
Perhaps of particular interest to any organisation considering an expansion into Robo-Advice, is the apparent need for a tailored approach to the marketplace; with different age-groups and different value investors potentially requiring markedly differing approaches from FS providers.
Yet, while the Robo-Advice marketplace might be potentially fragmented and complex, a common thread ran through our consumers’ point of view: Robo-Advice must always be supported by a human safety net for those times when things go wrong.
Download the new report now and let us know your thoughts.
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