The rise of technology is being shut down by IFA clients who still yearn for face-to-face advice.
Financial advice network Openwork surveyed 1,014 UK adults and found 71% have concerns that robo-advice may not be entirely appropriate for their financial needs.
Despite robo-advisers providing an advanced, low-cost option for accessing financial advice, 73% prefer to receive face-to-face guidance on their finances.
However, younger people are more supportive of robo-solutions, with 44% of under- 25s unconcerned that robo-advice may not be the best tool to meet their goals.
Claire Limon, director of learning and acquisition at Openwork, said: “It is clear that robo-solutions are becoming increasingly advanced. However, consumers are still unsure if it is right for their financial needs and do not feel that it can substitute human interaction.”
Mind the gap
If more clients want face-to-face interactions, the industry has a real problem filling the advice gap.
The number of IFAs is rapidly depleting and the sector needs to solve the issue.
“There is strong demand for face-to-face advice and Openwork is committed to increasing the number of advisers in the UK from as diverse a talent pool as possible,” said Limon.
“Our Openwork academy programme welcomes people from all walks of life to pursue a career in financial advice.”
Openwork launched its academy in 2014, which has now trained and qualified more than 104 advisers.