About couple of centuries ago, may be even pre-industrial revolution, the ratio of tailors to overall population would have been more. i.e. There would have been lot more tailors as percentage of population.
Today, it’s not the case. That does not mean more people are roaming around naked :-). It is because our dresses are made in a more mechanised way. There are still people who get tailor-made dress, but as we all know it is expensive and hence for special occasions.
Similarly, the 'tailor-made financial advice' market will also go down the way of 'tailors'. We are not trying to be a 'Nostradamus' with this prediction. We think above scenario will be a natural evolution based on technological advances. Human advisers will not be able to cope with increasing huge demand for advice.
That is the problem, we are trying to solve. Our Robo-Adviser will provide personalised unbiased advice.
Please refer to the following document that shows the returns of different of asset classes over the last 40 years.
Do you know that 'Gold' is the best performing asset class in the last decade ? But I have never seen an Adviser recommending investing in Gold.
The traditional regulated advice is more 'American' in terms of focusing on 'paper assets' like stocks and bonds. But Our Robo-Adviser will cover a broader spectrum of different asset classes.
There are several 'Robo-Adviser' start-ups. They have 2 big issues: first there is NO 'Robo' & Second there is NO 'Advice'. Yes, those 'robo-advisers' are more of 'automated investment platforms'. But our differentiation is as follows:
· It will provide actual advice in terms of investment platform selection, Retirement pension calculation, portfolio construction, etc.
· It will be an adviser that is based on 'whole' of the market and across asset classes (not just paper assets).
· It will be a platform that is based on existing investment products across the industry. We will also be working with existing independent financial advisers. Customers will have a choice to take advice from Automated or Human advisers.
· The cost of customer acquisitions is very high, majority of Robot advisers will go bust before entering profitability. But we will work with existing producers of investor products and human advisers using our platform for a transparent fee. Our customer acquisition cost will be significantly lower thereby increasing our pace to sustainability & profitability.
· We will have voice integration (using Amazon Alexa, Google Assistant and Apple Siri). The investor will be able have a conversation to the Robo-Adviser like talking to a Human Adviser. It will be an 'Adviser, to whom an investor can talk to, whenever they need to'. The online adviser will be available to talk, irrespective of investment pot size of the investor. Imagine an investor asking
'Alexa ask AdviseCentral about my pension performance?
and then our Robo-Advisor responds with relevant response after looking at the pension portfolio'.
That's our vision.
In few months’ time, this section will have a Robo-Advisor feature that will help you to choose a SIPP provider !! You need to be registered to try that feature. Keep watching this space...