Roboadvice an opportunity for advisers
Analytics firm Cerulli Associates has released research that shows even the most automated roboadvice platforms offer clients the opportunity to receive personalised advice from a human representative.
Roboadvice is being discussed in New Zealand because the Financial Advisers Act review is looking to update the law to allow for it.
David Boyle, group manager of investor education at the Commission for Financial Capability and a member of the steering group for the FAA review, said roboadvice was a potential starting point for people who did not know how to engage with financial advice, and who were not ready for a personalised advice service from an adviser.
But he said it was only as good as the information a client submitted, and most people would reach a point where they needed the services of a financial adviser. "Roboadvice doesn't take into account people's feelings and emotions around risk," he said.
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