Advisers need to adapt to robo advice, experts say


If financial advisers adapt to the new technology, it won’t be a risk to business.


Financial advisers need to adapt to robo-advice or risk struggling to keep up, experts at an event in Newport, UK said.

The panel of experts at the Chartered Institute for Securities and Investment’s financial planning conference discussed the risk that traditional financial advisers would face if they don’t embrace automated technology.

George Rooke, head of UK portfolio management at Wealthsimple, said if traditional advisers “are not doing what they should do then the clients will walk away and our service is probably easier for them to come to.”

Today’s clients demand more engagement, such as apps and other devices, says Clinton Askew, director of Citywide Financial Partners.

“You either engage or you don’t but if you don’t you might end up at a cliff edge where your clients have gone and the money has gone with them,” he said.

Not all robo-advice companies think they will push out human advisers.

Michelle Pearce, co-founder of robo-adviser Wealthify, said her firm was targeting new clients, not the ones that already use traditional wealth management services.

“It is the people who might have £5,000 to invest,” she said. “We are working with financial advisers who are referring business to us because they don’t want to service those clients.”

Regardless, advisers should use some type of automation service, said Ian McKenna, director of the Finance & Technology Research Centre.

“You need those young clients to come on to be the future of your business unless you are intending to close the business down and not sell it,” he said.

“If you are intending to sell it, it will make a very big difference to the valuation you can achieve for the business.”

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