The Face to Face appointment v’s Robo advisers - Taking Advise to the next level

In March, Darren and 2 other experts in the Robo advice field spoke on the panel at the S&P Dow Jones Indices forum. The discussion centred around the use of Robo advisers and digital tools, how they are changing the adviser landscape and the importance of the face to face appointment with your adviser. Below is a snapshot of his view on the subject.

“While I definitely see a place for Robo advise for smaller balance clients, who may not be able to afford expert financial advice, it tends to disengage investors from the wealth creation process. At some point, when these investors decide to become engaged, it is unlikely they will use Robo Advice, as it is the engagement with the wealth creation process that they are after. The trigger points may be age related, e.g. Turning 50 or balance related e.g. Achieving a balance of $500K in Super for example.

Industry funds, while not exactly providing Robo Advice, certainly run models that tend to disengage their investors. Again, when these investors reach a point where they wish to become engaged, Industry Funds tend to suffer outflows of funds to SMSF, which is very much an engaged investment vehicle.

Therefore the challenge for the Robo Advice model is to provide a competitively priced model, while at the same time keeping their clients engaged in the wealth creation process.”

Featured Posts
Recent Posts

Merit Planning (East) Pty Ltd ACN: 612 699 555
Asic No. 1246989 is an authorised representative of Merit Wealth Pty Ltd ABN: 89 125 557 002 (AFSL 409361)

2016 Merit Planning (East) Pty Ltd 

T:  02 8076 6026

M: 0432 988 773

Level 21, 133 Castlereagh St
Sydney NSW 2000


PO Box Q1071

Queen Victoria Building NSW 1230