Robo-advisers 'disrupting' self-directed client segment

Emotional value of advice still a ‘completely human endeavour’

Isabel Baxter
clock • 3 min read

Robo advisers are ‘disrupting’ the self-directed client segment, while the emotional value of advice remains a human endeavour, Vanguard senior manager and behavioural economist Paulo Costa told Professional Adviser

Sitting down for an interview with PA, Costa explained that when it comes to the emotional value of advice, that is still a "completely" human endeavour. "One of the top reasons why clients come to a financial adviser is for peace of mind," he said. Recent research from Vanguard, in the US, found that when clients were asked, ‘If you didn't have a financial adviser, how much peace of mind would you have?' — only 25% said they would. But with an adviser, 80% said they have peace of mind. "That's a huge difference," he noted. Costa explained that although this is US research, the ...

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