Robo-advisers have risen in popularity, but only 53% of retail investors would consider using a robo-adviser platform.
That is according to new research from Nucoro, a B2B FinTech company providing wealth management as a service solutions. The researchers polled 1,028 UK retail investors for the survey. Some 60% of male investors and 47% of female investors would consider using robo-advisers.
Moreover, seemingly the sample suggested someone’s age determined how likely they were to use robo-advisers. For instance, 76% of retail investors between the age of 18 and 24 would feel comfortable using them, compared to only 32% of those aged 65 and over.
Nikolai Hack, COO and UK managing director of Nucoro, said: “Robo-advice platforms are a relatively new development in the wealth management sector and are clearly set for strong growth, which in many cases will be driven by younger investors.
“However, robo-advisers clearly need to provide service levels around several issues important to investors, and in some cases, this could mean providing access to human advisers. Increasingly, success in wealth management will come down to the technology and digital proposition that providers can offer their clients around all aspects of how they manage their investments. Because of their legacy systems, more IFAs and wealth managers will need to outsource these areas of their operations to specialist third parties like us.”
The topic of robo-advisers was discussed at FinTech Global’s WealthTech Summit 2018. One panel consisting of senior staff from Motive Partners, Legal & General, EValue, State Street Global Advisors and M&G Investments, stated that the space is only at the beginning of its journey.
The panellists also mentioned that there are still several untapped markets in this space, with EU regulations like the General Data Protection Regulation and the revised Payment Service Directive providing ample opportunities for personalized services.
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