In a survey of UK wealth managers, carried out by Vanguard, nearly 40% of respondents said robo advice offered the potential for more efficiency and an opportunity to attract new clients to their business in the next five years.
Equally, nearly 40% of respondents said they viewed robo advice as a threat to their business.
The rest said there would be no impact to their business (7%) or they were yet to form an opinion (15%).
Janine Menasakanian, head of Wealth for Vanguard’s UK business, said, “The advent of the robo advice age is creating significant hype and so it’s not surprising that wealth managers are considering the impact over the long term.
“What we do know is that technology is here to stay, so wealth managers will need to consider how to embrace the advantages of technology whilst still emphasising the personal, trust and relationship-based parts of their value proposition.”
The survey of 70 wealth managers, which took place at Vanguard’s inaugural Wealth Management conference, also revealed:
– Most wealth managers (42%) are in the early stages of preparing for Mifid II, nearly 30% said they were on track and only 5% said they were well prepared.
– Over 60% of respondents viewed factor-based investing as an active investment strategy whilst the rest thought it was a passive strategy.
Menasakanian concluded, “The survey findings show that wealth managers need to consider a range of operational, regulatory and investment issues to ensure their value proposition remains relevant and compelling. We are committed to helping wealth managers add value to their client relationships, to give them and their clients the best chance of investment success.”