Robo-advice: friend or foe?
8 December 2015
Welcome
Tony Miles
Senior Business Development Consultant
Personal Finance Society
Learning Objectives
To help us all understand
• The range of digital services that are emerging in the advice
market
• The growing demand from consumers for digital interaction
• The potential for technology in widening access to advice
• How clients with simple needs can be cost effectively
serviced using technology
• The current limitations of technology within the advice
process
• The main barriers to effective deployment of digital services
and the suitability of advice
Please submit your questions
So, what’s it all about?
Today’s expert panellists
Ed Smith
Head of FAMR
Secretariat, FCA
Ian McKenna
Director, F&TRC
Richard Goodall
Partner and Head
of Distribution,
Parmenion
Providing seamless customer experience
‘The role of technology’
Richard Goodall
Head of Distribution
Parmenion
Bringing Tech to Customer
Experience
Changing consumer priorities
• More focused on how a service makes
them feel – “the experience”
• Speed and immediacy are critical
expectations
• Seeking personalised solutions
• Less emphasis on choice more on
integrated solutions
• Flexibility means access to services on their
terms
• Quality is not synonymous with complex;
straightforward works
Immediacy
Providing engagement choice
Telephone
Online
Email
Mobile
Screen sharing
Video conference/Skype
You can deliver a 24/7 service
up time so clients can access
your business how and when it
suits them.
Importance of human interaction
Investment
shoppers still need
affirmation in their
decision making.
Key features of multi channel
business
Ease of doing business is critical
Face to face
Advice
Technology
Telephone
Online
Investment
Service
People
Process
What is digital advice?
Ian McKenna
Director
F&TRC
What is Digital Advice?
Why it is more than just investment management
 PFM (short term, day-to-day)
 Gamification of lifestyle improvement
 Holistic or Goals-based planner
 Investment Management
Regulation and robo-advice
Ed Smith
Head of FAMR Secretariat
FCA
Why is automated advice important to
FCA?
•
•
•
•
Expected area of growth
Potential to serve consumers in low cost/convenient way
Growing use of digital technology by consumers
International interest
Potential risks and benefits for consumers
Risk
Benefits
Project Innovate
Project Innovate supports innovation by:
– Providing direct support to firms
• We can offer advice/clarification, informal steers, meetings
with relevant departments
• Over 175 firms supported in the first year of activity
– Reviewing policies and processes
•
•
•
•
Regulatory sandbox
RegTech
Themed weeks (first forum was on robo-advice)
Call for input on regulatory barriers to innovation in digital
and mobile solutions
• The cloud
Financial Advice Market Review (FAMR)
• Advice gap for those who do not have significant wealth
• Autumn consultation with proposals published early in 2016 ahead of the
Budget.
• Comprehensive scope: initially across all sectors and based on broad
definition of ‘financial advice’ examining:
o
the regulatory or other barriers firms may face in giving advice and how to
overcome them
o
how to give firms the regulatory clarity and create the right environment for
them to innovate and grow
o
the opportunities/challenges presented by new/emerging technologies to
provide cost effective, efficient and user-friendly advice services
o
how to encourage a healthy demand side for financial advice, including
addressing barriers which put consumers off seeking advice.
Any questions for the panel?
Thank you
www.thepfs.org