Would you trust a robot to manage your finances?

Financial advice by computer algorithms, or ‘robo advice’ as it is often known, is a growing business.

Robo advisors are able to analyse your financial situation and goals, then suggest investment strategies. This is achieved through asking a series of questions online about a person’s finances, attitude to risk and financial goals. Then, artificial intelligence tries to match the profile to the right investments.

While some robo advisors are very sophisticated, financial management firms argue that they cannot replace human advisors and that it is questionable how effective their advice is, especially if the investment products they recommend carry high risk. Even businesses that use robo advice admit that for many complex financial situations, human advisors are needed. Perhaps the future is to integrate technology with a human-based advice service.

In 2015, the Redefining Retirement report showed how financial advisors benefit people. Of people who regularly see a financial advisor, 90% were satisfied that they had benefited from the advice. The key benefits that people experienced included the likes of peace of mind, the achievement of financial goals, protection of wealth and wealth growth.

In common with many other industries, robots and artificial intelligence are having an impact on the financial advice sector, but for people living in the Wirral, Chester, and Liverpool areas there is no real substitute for using trained, human professionals. Speak to Endeavour Financial Planning for all your wealth management requirements, and you will certainly experience the human touch.

Sources: http://www.bbc.co.uk/news/business-41159944 https://www.oldmutualwealth.co.uk/about-us/why-get-financial-advice/

Posted by Alan
29th September 2017


All blogs and news on Endeavour Financial Planning are for information purposes only and are not intended to provide advice. Please seek the advice of a financial advisor before making any financial decisions.

Financial Advice

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