Why consumers still want human financial advisors, not robots

Artificial intelligence appears to be the future of customer service. With more companies shedding staff and replacing them with digital equipment, it’s no surprise that the future will welcome state-of-the-art robo-advisers. Have you thought about getting rid of your financial advisor and opting for an online service instead?

Rise in technology has led to creation of robo-advisers

Ten to 20 years ago, the prime way to invest was through a broker. Due to rising costs, it was only an appropriate move if the sum you wanted to invest was significantly higher than the fee required. The rise in technology led to the creation of robo-advisers which are apps that stand alone or are partnered with a service package from a financial institution.

Most people want a trustworthy personal advisor. However, an automated version means fees are lower or even non-existent. Inspired by the progress in technology, banks are now offering advisors powered by artificial intelligence.

The removal of bricks-and-mortar facilities has allowed financial institutions to pass their savings on to the customers, but people of retirement age are shunning automated systems for human contact as that is what they have been accustomed to.

Humans offer a psychological aspect

Robo-advisers have advantages over humans as they operate 24/7. They are, however, designed for investors without the time or interest in managing their own affairs. One of the most valuable services that humans provide is the psychological component in the form of support during what can be a challenging time, and the strong communication.

A good human advisor will gather the vital information and then investigate options with the client. Robo-advisors can’t make an emotional connection with their clients, and it looks like this will not be possible in the near future.

According to Forbes, robo-advisors can’t understand changes in personal circumstances that affect how money will be used, like the sudden death of a loved one.

If you require the services of an independent financial advisor Swindon, firms like https://chilvester.co.uk/ can help. They offer a full range of financial planning services.

Despite the rise in robo financial services, their appeal has started to wane. The industry has seen a shift toward a hybrid model that includes limited human interaction. It’s recognised that this could be the future of finance.