Robo-advice: Report detects 'elephant in the room'

'Perpetual thorn' in advisers' side could also sting robos, report suggests

Scott Sinclair
clock

The biggest obstacle blocking robo-advisers' path to prominence is the same problem that plagues the entire financial services sector - the almighty cost of acquiring clients, according to an eye-opening report.

Robo-advisers are "paradigm changing" but assuming they will find their own customers is "dangerously incorrect" and could "spoil many careers in financial services", the report, entitled The Robo Revolution and collated by risk profilers FinaMetrica, concludes. Acquisition costs - which include finding and converting new prospects - have been estimated at £200 per client in the UK, which is "beyond the means" of many advisory firms and explains their slow growth, the report adds. The FinaMetrica study takes a macro look at automated advice models around the world - the market is esta...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Technology

Rosemount financial promotions tool built to get ahead of 'AI-generated nonsense'

Rosemount financial promotions tool built to get ahead of 'AI-generated nonsense'

Average financial promotion approval turnaround time of one hour

Sophia Panayi
clock 02 June 2026 • 3 min read
Transitioning from legacy to AI-native technology in advice

Transitioning from legacy to AI-native technology in advice

'Unplugging advisers from the Matrix'

Brian Wagner
clock 01 June 2026 • 4 min read
Why consistency is key to ensure auditable AI outputs in advice

Why consistency is key to ensure auditable AI outputs in advice

'If inputs diverge, so do outputs, and so, potentially, does the advice those clients receive'

Nawaz Mucadam
clock 29 May 2026 • 4 min read