Investors are attracted to the price convenience of digital solutions; however, the lack of physical contact and support in times of market volatility is a drawback for many unexperienced investors, according to GlobalData Financial Services. Scalable Capital has addressed the issue with a new personal advice service.
In January 2018 digital wealth manager Scalable Capital launched its personal advice service in the UK, which allows investors to call or have a face-to-face meeting with a qualified financial adviser.
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By GlobalDataWith a fixed £200 ($270) fee for the entire advice process, the company says it launched the service to answer demand from “wealthier clients” with complex needs that require more than just investment management solutions.
Incumbents of the likes of UBS have already addressed the need for hybrid advice and rolled out their proprietary robo-advice platforms alongside their existing adviser-led propositions.
It was only a matter of time before digital disruptors would do the same and bridge the gap of personalized advice. It is also likely that other fintech startups will follow suit, and in fact, Wealthsimple already provides individual advice to its clients over the phone.
As per our data, hybrid advice is the way forward, not only for digital platforms, but also for incumbent providers.
Over 75% of wealth managers interviewed for our 2017 Global Wealth Managers Survey agree that digital access and channels are essential for wealth managers serving HNW investors. Almost half are looking to partner with fintech start-ups over the next 12 months.
The successful wealth management propositions of the future will combine the best of human and digital capabilities. While human advice will remain a staple for guiding clients through their financial journeys, a digital proposition is essential: once the planning process is taken care of, clients will look for a direct and hands-on approach to managing and tracking their savings.