August 23, 2019 09:30
The firms wealth management in the Uk should be concerned about the popularity of investment platforms online and the robots-advisers, according to the analysis firm GlobalData.
“With [such offers], which disrupt the investment industry, it was only a matter of time before the sector of the financial council is also affected. Financial advisers independent digital begin to be adopted on the market and the chances that they disappear are slim, ” stresses Sergel Woldemichael, senior analyst in wealth management at GlobalData.
A sector disrupted
According to a survey conducted in 2018 by GlobalData to independent financial advisors, 6,3% of them are concerned about the trend of customers heading to the robots-advisers. According to the firm, they should be more concerned about.
“For the time being, the aversion to the costs of council rates has been beneficial to the robots-advisers who have been able to attract those who are willing to give up on financial advice customized to investment options, automated “, explains the firm.
GlobalData asserts that the younger generations have a strong interest towards digital services. However, these young people want to still have access to a financial advisor in case of need.
“The technology in the field of wealth management has once again opened the doors to the population so that it can receive advice and that it can manage its investments. Innovations such as the robots-advisers are inevitable and, although they have little chances to conquer completely the sector, they will appeal to customers concerned about their costs, ” adds Mr. Woldemichael.
Arrival of a new robot-advisor
The robots-advisers, available on the web or through an application, allow them to serve customers through a digital experience.
For example, GlobalData cites MyEva, a digital platform launched in the Uk last July. The latter, according to the firm, is expected to boost the market of digital platforms in terms of financial advice.
“The recent launch of MyEva, a digital platform to independent advice, will add an extra layer of competition in the british market, which already offers several options for the council. With a new entrant, the robots-advisers will need to improve their game and give more importance to the aspect board of the business, ” says Sergel Woldemichael.