Threat or Opportunity – Your Verdict

There appears to be markedly more concern in the advice community today about the prospective challenges and competition digital advice services may bring than was evident 18 months ago.

As we go to press, the results from our latest poll found that four in 10 respondents (41%) disagree with the premise that digital advice services do not compete against the value financial advisers deliver, meaning it could be seen as a threat.

However 18 months ago, when asked the same question regarding robo advice, just 23% disagreed it would not compete.

The percentage of respondents agreeing that digital services won’t be competing with them, has correspondingly tracked down from 60% taking that stance 18 months ago, to 50% in our latest poll.

As noted earlier we’re seeking an update on whether advisers perceive digital advice to be a threat to their business or an opportunity following the news of the formation of the Digital Advice Expert Group to work and advocate in conjunction with the FSC (see: Digital Advice Expert Group Launched).

Digital advocates argue that digital advice technology is the only way to bridge the huge gap between the current demand and supply of advice.

The question here is whether the emergence and future acceptance of digital advice will serve to reinforce and complement the services provided by human advisers or prove instead to be a more efficient and lower-cost competitor.

Our poll is open for another week and we welcome your thoughts…