We know that robo propositions make up the fastest growing segment of the direct to consumer market in the UK and across Europe they now manage over €10bn. But while the growth story is impressive, acquisition is a real struggle.
One global trend is robos looking to add access to human advice. This broadens the appeal to older and wealthier demographics but will it produce the shift in demand that is necessary to create commercially viable businesses?
We think it will help. Our latest consumer research reveals that only 18% of European investors are open to using pure robo-advice. However, this almost triples when some sort of human advice is also available.
This suggests that many investors are not yet ready to trust a machine to invest and manage their hard-earned money. They need a human touch.
The FCA was channel-agnostic for financial advice, but it has now been summoned by the UK parliament’s Work and Pensions Committee to review and compare consumer outcomes from face-to-face and automated advice. This may lead to some level of mandatory human involvement but could go the other way and give a boost to those with a purely digital approach.
We are publishing our European Consumer Insights report next week with essential insights for companies designing and developing investment propositions. The consumer is always the best place to start.
Click here to download the outline of the report.