Robo advice is not a business model but rather a technology model which allows clients to do the driving, according to US expert and chief executive of Riskalyze, Aaron Klein.
In a keynote address to Money Management's Fintech, Platforms and Wraps Conference today, Klein sought to define what he saw as the most appropriate role for robo advice — as an adjunct to holistic advice.
"Robo advice is like automatic teller machines are to banks, in the end people want humans involved in the process," he said.
Klein said there needed to be an understanding that self-directed investing did not actually equate to advice and that until robots had the ability to empathise and think, this would continue to be the case.
He said that where robo advice did deliver value was in terms of freeing up the time of planners to deal with more complex and valuable advice issues.
Financial advice is having a significant impact on how Australians are engaging with the more complex aspects of their superannuation, new findings have shown.
While the Financial Advice Association Australia said it supports a performance testing regime “in principle”, it holds reservations about expanding this scope to retirement products.
In a Senate submission, the Financial Services Council said super funds should be able to nudge members on engaging with their super and has cautioned against default placements.
The Joint Associations Working Group, which counts FSC in its ranks, has issued an urgent warning to the government.
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