According to International Financial Data Services director of innovation Phil Goffin, Robo-advice in its current form is no longer interesting or exciting and will not be around for much longer than five years.
In a technological sense, the industry needs to invest more to be able to give consumers what they want. One of the assumptions that the expert made at a TISA seminar in London was that the human brain would be outsmarted by artificial intelligence in the next few years.
Even if the Financial Conduct Authority officiallt recognized the practice and did its best to explore what it can do to help innovation in the field by organizing a three day symposium, apparently advisers are building their own solutions and the banks are investing more and more in different fintech solutions research.
The Financial Advice Market Review also began with a look into how robo-advice could help fill the advice gap – the limited access to advice for less wealthy people.
However, according to Goffin, the asset management industry still lags behind banks in its effort to explore the space despite being well placed to innovate, benefiting from strong brands and consumer trust as well as available capital.