UK wealth managers show support for automated services
New entrants offering robo-advice and digital tools are helping wealth managers, who are responding well to the rise in demand for automation, according to insight from Verdict Financial.
The market research firm's ‘Wealth in the UK: Competitive Dynamics 2016' report showed that wealth managers in the UK felt positively toward automated services and there was little likelihood that digital offerings would be a direct threat for traditional wealth managers.
Verdict Financial wealth management analyst, Nicole Douglas, said that while managers believed automation was set to increase over the coming 24 months, they had been seen to embrace opportunities to reach audiences through digital offerings.
"According to our 2016 Global Wealth Managers Survey, 49.5 per cent of wealth managers believe the demand they currently experience for automated investment services will increase in the next two years, indicating a noticeable proportion of the market prefers digital platforms in which to carry out investment decisions or seek advice," she said.
According to Douglas, as many as 87 per cent of advisers felt little to no threat about the possibility of being replaced with robots in the near future, and were set on integrating new digital solutions with traditional offerings.
"Our data shows that 67 per cent of wealth managers agree with the statement that investing in automated investment services can complement their existing offering," Douglas said.
"Our data shows 87 per cent of wealth managers disagree with the statement that traditional wealth managers will lose market share to automated investment services — or ‘robo-advisers' — in the next 12 months."
AUTHOR
Hope William-Smith
Recommended for you
ASIC has banned a Melbourne-based financial adviser who gave inappropriate advice to his clients including false and misleading Statements of Advice.
The number of active advisers on the HUB24 platform has risen to more than 5,200, helping it see quarterly inflows of $5.2 billion.
ASIC has banned a Melbourne-based financial adviser for eight years over false and misleading statements regarding clients’ superannuation investments.
CFS has formed a strategic partnership with the University of Sydney to support the responsible development of AI solutions in the wealth management sector.
