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Leading UK financial services consultant Altus releases robo-advice review

The new Altus Consultancy report “Rise of the Machines: Where Next For Robo-Advice?” provides an excellent insight into the global automated advice industry. Authored by one of the UK’s most informed financial services consultants, Simon Bussy, the report covers four key elements.

  1. What is the long-term outlook for the robo-advice market?
  2. How will the robo-advice market develop over the next three years?
  3. What will be the outcome for the current robo-adviser 1.0 businesses? What are they going to do next?
  4. What role will big brands have in solving the advice gap challenge?

The Altus report contends that the core definition of robo-advice will shift. Instead of being limited to ‘automated investment-only solution[s]’, Bussy argues that the definition will soon be used to describe:

“An automated, smart-technology experience which encompasses and proactively guides all aspects of a consumer’s financial and personal prosperity, well-being and lifestyle.”

Data giants and their partners will have the ability to continuously access the inimitable data that smart-phone owners provide every day. This will allow them to create products and services that are customised to suit all facets of the consumer’s life, whenever they ‘manage and interact with money’; Bussy coins this stage robo-advice 3.0.

Individuals are already raising concerns about customers being lost to ‘alternative financial services propositions created by the data giants’, with financial markets being disrupted in a similar fashion to Apple and the music industry.

So, what will this mean for both the robo-advice market, and the current 1.0 robo-advisers? The Altus report puts forward a number of suggestions for both survival and success in the fast-moving market, including partnering with big-name brands who have wide consumer reach. The report concludes by asserting that businesses who can quickly adapt to change will be the ones to flourish, with best-in-class technology companies being the big winners, along with big brand and financial advisers who welcome new technologies and directions to market.

Download your full copy of the report here.