Over the last few years the financial advice industry has seen the introduction of what is colloquially termed ‘Robo advice’. That is, financial advice created by a computer. The premise of this type of advice is that clients will consult with a version of ‘mechanical intelligence’ to garner a specific financial strategy, suitable to their current situation. I would imagine that the ‘robo’ adviser will also execute its own recommendations and deliver the appropriate fee, all while you wait.
Call me old fashioned (I’m not), but generally speaking I am not sure that all technology has actually advanced the plight of the consumer. Does anyone remember when a petrol station attendant actually put the petrol into the car for you, and checked the vital fluids under the bonnet? These days, I check out my own groceries, I do all my own banking. Oh, and not to mention book store browsing (one of life’s great pastimes) – it has almost disappeared with the introduction of kindle et al.
In fact today, I actually ‘chatted’ with a computer at a large energy provider, who helped me with a number of queries – It seems that we are heading to a completely self service society all in the name of innovation.
I am not saying this is a bad thing, not at all, but it does seem somewhat at odds with the constant mantra regurgitated by corporations about ‘customer first’. You need only think ‘telephone menu’ to understand what type of ‘monster’ can be created in the name of service.
And now, those zany, lovable larrikins at our large financial institutions have de- cided the world is in need of self service financial planning. My goodness, going by their past misdemeanours in this area; do we really want a computerised version of the same?
Well I for one, am certainly sceptical about the ability of a ‘robo’ adviser to provide anything but, compartmental- ised,’ tick box’ advice solutions that could be easily achieved by an even slightly financially knowledgeable client.
What the introduction of this type of automated advice really does show, is that the current advice process is really a formulated concept with no individual client architecture required in a lot of in- stances. If financial advice can be transferred to an automated system, why in the hell have clients been coerced into paying so much in the past for the oft cited “quality advice” Mmmmm…!!
So think carefully if you are offered a simpler and cheaper alternative for your financial advice. It may appear easier and probably seem more convenient, but remember, you will be the one doing it all and guess what; you’re still going to be paying for it. Oh, and don’t remove anything prematurely from the bagging area either! (hang on, that’s groceries…..)
