LIFT-Financial Robo-advice is the future? I sincerely hope not.

This post is over a year old. There may now be updates to the facts stated and the views of the author. Please read with this in mind or check for more recent articles in LIFT-Financial.

Big financial institutions are putting huge resources into the development of robo-advice. They’re hoping to capture the billions of funds under management that is up for grabs and to transform the way in which regulated financial advice is delivered in this country.

It’s inevitable that the evolution of FinTech and artificial intelligence will redefine many professions, not just that of financial advisers, but it’s my strong belief that it will not make the best of our profession redundant.

My experience at a client meeting last week reinforced this belief.

The client in question had an important financial decision to make, one that would greatly impact not only his but more pertinently his family’s future. However, rather than confront that decision he wanted to avoid it and deal with other less pressing matters first.

The main decision revolved around whether to transfer his final salary pension after receiving a transfer value that had risen 30% in the last 12 months. He couldn’t make a bad decision as he was in a strong position either way but through discussion, I established that the client was ‘’scared to death’’ about making the wrong one. Once we’d gotten to the bottom of how he was truly feeling we could talk openly about why he felt that way. I tried to allay those fears by helping him look at the implications of either decision and how both intertwined with other aspects of his finances, family and future plans.

Money is an emotional subject for us all, particularly when the decision is irrevocable. Whilst we must accept and adapt to change, when it comes to making life changing financial decisions, a well-qualified, experienced, solid human being will offer something that technology can’t.

Someone who can empathise with you, be intuitive to your feelings, who listens and is able to build rapport - even friendship - will remain at the heart of how people want to and should receive financial advice.

The Financial Planners at LIFT-Financial are a diverse group of some of the best qualified people in the business, each with their own professional and personal experiences to share with our clients. If you are interested in understanding how our advice process may benefit you and your family, then please get in touch. 

Jonathan Douglas – Latest Blog Posts

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