The arguments about robo-advice have been spinning around for a while now. What is really going to happen to the traditional IFA industry? Will robots replace humans? According to the chief executive of digital investment manager Moo.la, Gemma Godfrey, robo-advisers will not put an end to the traditional IFAs.
Meanwhile, Shaun Port, chief investment officer of the UK’s most popular robo-adviser, Nutmeg, stated that the online investment platform presented the use of fractional share dealing in exchange traded funds (ETFs) earlier this year. Fractional shares let investors buy just a fraction of an ETF unit costing as little as one penny, rather than a whole share so that they can now build risk-weighted asset allocation into accounts worth as little as £100.
The new fractional shares dealing in ETFs will provide digital solutions in terms of who is running money for the advisers.
There’s no need to be scared of technology replacing humans in the advisory industry, on the contrary, advisers should embrace technology and get the best out of it in order to help clients manage their portfolios and better understand the nature of investment products.
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