Offering automated advice alongside a firm's normal proposition can be a good way to attract younger investors, but there are a few things advisers should consider before building and running such a service.
Using tech can be an effective strategy to tap into the great wealth transfer, says adviser James Anderson who launched digital advice service AllAdvised in 2022 under the umbrella of Westminster Wealth Management.
He says he's had a number of frustrated conversations with technology firms before finally finding a suitable tech partner.
He partnered with Ningi, an end to end tech stack for advisers, founded by chartered financial planner Peter Ridlington, who says post-consumer duty "there is a real appetite to create a proposition that can be used by someone with less than £100,000 for example, which is often the cut off point for a traditional advice process."
Financial advisers, particularly smaller firms, have not traditionally been keen on the idea of robo-advice, but these services and use cases are different, says Ridlington.
In this Better Business podcast Anderson and Ridlington discuss what it takes to make an automated advice service work for a small to mid size firm, why advisers might consider it and what the benefits are of putting the time and resources into running such a service.
To listen to the podcast click on the link above
carmen.reichman@ft.com
