One fifth of advisers actively looking to launch robo-advice service

robotOne fifth of financial advisers are actively looking to launch a robo-advice offering, according to research by Panacea Adviser.

In the latest survey of 104 advisers 8 per cent said they are in the process of creating a robo-advice proposition while a further 12 per cent are considering moving into the space.

Among the respondents 2 per cent have already adopted robo-advice into their model while 66 per cent are undecided on whether to offer robo-advice.

The findings are in contrast to a Panacea survey from July 2016 that found 89 per cent of advisers saw robo-advice as a threat to traditional face-to-face advice.

Panacea Adviser chief executive Derek Bradley says: “Robo-advice has attracted a great deal of attention and industry debate, which is what most likely sparked the initial negative reaction from advisers towards the ‘rise of the robos’ a year ago. While automated services still represent a relatively small market here in the UK and the technology itself is also fairly limited at this stage, it’s nevertheless interesting to see advisers remaining open to some of the opportunities presented by robo-advice.”

Bradley says for robos to really gain traction the FCA needs must approve any suitable robo models prior to launch, so that the regulator is held accountable for incorrect algorithms rather than the adviser.

He adds: “I would argue that the word ‘advice’ needs to be replaced with something more along the lines of ‘guidance’…Without all these ducks lined up, robo is highly likely to fail.”