"There’s a growing acceptance that robo-advice has a role to play but advisers have real concerns about the potential regulatory impact it will have."
76% are worried about possible long-term compliance and regulatory challenges while 67% fear robo-advice solutions will not provide the best advice for clients.
40% of advisers are worried about their firms losing out to technological-based solutions and more than half (54%) say robo is suitable only for clients with smaller funds.
However, adviser attitudes to robo-advice have changed in the past year, and 69% now believe technological-based solutions can help to close the advice gap. A similar study last year showed fewer than one in five (17%) believed robo-advice would help.
When it comes to launching their own versions of robo-advice over the coming year – 41% of advisers said they or their firm had plans to offer robo-advice solutions alongside traditional services.
Paul Harrison, head of Prudential’s business consultancy for advisers, said: “There’s a growing acceptance that robo-advice has a role to play but advisers have real concerns about the potential regulatory impact it will have.
“Many advisers remain sceptical about the risks and rewards of robo-advice, although improved technology can bring greater efficiency, reduce costs and help advisers to serve clients better while continuing to run viable businesses.
“However, views are changing rapidly as technology expands. Advisers will need to adapt to prove the ongoing value of bespoke advice and benefit from the opportunities technology offers.”
