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

Adventures in AI: Words of wisdom on chatbots

Adventures in AI: Words of wisdom on chatbots

Part four in the series...

Mike Morrow
clock 19 August 2026 • 3 min read
The integration trap: Five questions wealth managers should be asking

The integration trap: Five questions wealth managers should be asking

A practical lens for leaders navigating integration

Barry Frame
clock 17 August 2026 • 4 min read
Licence to advise: Ensuring AI agents are designed for human clients

Licence to advise: Ensuring AI agents are designed for human clients

'Behavioural science needs to sit at the centre of how agentic AI is designed for financial advice'

Louis Williams
clock 17 August 2026 • 4 min read