Robo-advice isn’t just for millennials

Robo-advice isn’t just for millennials

‘Robo-advice’ is a good contender for the financial services buzz word of 2015. But, anyone who uses the term, seems to have a different interpretation of what it actually means. For some companies, it’s a word they don’t like to be associated with, while others are firmly flying the flag for robo-advice. While it may be an exaggeration of the service some companies offer, it may be under-selling the service of others. But one defining characteristic of a robo-advice firm is the integration and utilisation of innovative technology into the process of investing money.

A common myth is that technology and innovation are associated with younger generations; those who have grown up in a digital environment. But that’s definitely not just the case. Perhaps younger generations are more likely to be the early adopters of new technology, but it’s fair to say there is a significant number of ‘generation x’ and ‘baby boomers’ now embracing the digital age. Think of all those parents on Facebook!

The point of technology and innovation isn’t to provide digitally-savvy people with more complex or multifaceted services, it’s to make things easier and quicker. For everyone. People want goods and services delivered to them in the most convenient and cost effective way possible and that desire transcends age.

At Wealth Horizon, our clients certainly break the stereotype of generation. While we have young savers – just beginning their investment journey – we also have more experienced investors and clients that have received financial advice in the past and decided to now try the online version.

The Office of National Statistics (ONS) produces statistics for internet use, broken down into age bands. Almost all adults up to the age of 54 used the internet in the first quarter of 2015. And this only drops a little, to around 9 in every 10 adults, when accounting for all ages.

Online investment advice – or robo-advice (or any other phrase you might like to use) – makes receiving financial advice quick, convenient and does so at a lower cost than it would ordinarily be available. It can reach larger audiences; not being so bound by proximity or high minimum investment requirements.

These are all characteristics of a service that appeal to anyone in the market for financial advice. Or anyone who just doesn’t have the time to manage their own portfolio of investments.

So while the name may initially seem off-putting for some, robo-advice provides a valuable service to an underserved market.

A service for the millennials? Absolutely. For everyone else? Just as much so.

 

Sign up below to receive our monthly newsletter featuring investment information, money tips and a roundup of our latest blogs.

Other content you might find interesting:

  1. Long term lessons from the stock market
  2. 5 reasons not to invest and 5 reasons why they’re wrong
  3. Investing a lump sum – what you need to consider

 

Any news and/or views expressed within this article are intended as general information only and should not be viewed as a form of personal recommendation. This article is not directed to, or intended for distribution or use in, any jurisdiction where such distribution would be prohibited. To the extent permitted by law, Wealth Horizon accepts no duty of care or liability for loss occasioned to any person acting or refraining from acting as a result of any material contained within this article. Where past performance is shown, this should not be taken as a guide to future returns. Investment in the stock market is not a suitable place for short term money. The value of investments and associated income may go down as well as up and you may not get back the full amount invested.

Share this article

Share this article



Investment risk: Investment in the stock market is not a suitable place for short term money and you may not get back what you put in. All investment carries risk and it is important you understand this, if you are in any doubt about whether an investment is suitable for you, please contact us. Investment in the stock market and any income derived from it, may go down as well as up.

Wealth Horizon certainly lives up to its promise of making investment simple to understand

Get your FREE Guide "The 7 Principles of Successful Investing"

Enter your email below to receive a free copy

Sorry, but that email appears to be incorrect, please try again
Thank you for requesting our guide
"No thanks, I'm already a successful investor"

Your privacy is guaranteed – we don't share email addresses.