OK Computer – Paving The Way For Robo-Advice

Published: 14 January 2016

Innovation in the financial services industry is to be encouraged. Changes to pension rules mean increasing amounts of decision making (and the risks that come with it) are being placed at the feet of the consumer

Customers must feel they can trust a provider of advice. That they can trust not only the advice itself, which is vital, but also that they can trust them with their confidential and often sensitive information.

It has been predicted that artificial intelligence is set to take over a variety of jobs within the next 20 years. For the financial services industry, this comes in the form of ‘robo-advisers’, computer coded software which uses algorithms to provide advice. It promises to be big business. A report from A.T. Kearney predicts that by 2020, robo-advisers will manage about $2.2 trillion of assets in the U.S.

Innovation in the financial services industry is to be encouraged. Changes to pension rules mean increasing amounts of decision making (and the risks that come with it) are being placed at the feet of the consumer. Help is required for people of all wallet sizes. However, if robo-advice is to really make an impact then establishing trust is critical.

Customers must feel they can trust a provider of advice. That they can trust not only the advice itself, which is vital, but also that they can trust them with their confidential and often sensitive information.

Keith Brookbank, Director at Linstock Communications, shares a report on the rise of robo advice, and the importance of effective communication between the financial services industry and consumers if robo advice is to be a success.

To read the full article, visit FS Forum here.

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