Financial advice is changing ... or is it?
By James Paterson, Head of Advice
07 November, 2017
Artificial Intelligence: the latest buzzword capturing the imagination of businesses, commentators and future thinkers. It seems as though you can’t escape the term being hailed as the way of the future. One example of the ever trendy concept that is topical right now is robo advice. It has been featured in the news a lot lately, partly due to a proposed regulation change that will allow companies to offer personalised robo advice on investments, insurance and mortgages in New Zealand.
For a start, you may be wondering exactly what robo advice is: simply put you enter your personal financial goals and information into a computer programme and the computer comes up with a plan tailored for you. Make no mistake — the robo revolution is real and it is happening right now, but at the same time, it is somewhat bewildering because it is unknown and evolving so rapidly.
So what’s good about robo advice? Robos are disruptive because they change the speed, accuracy and supply of financial advice processed. This has the potential to make financial advice accessible to a greater number of New Zealanders, which sounds like a pretty good thing.
However, it does beg the question as to why financial advice isn’t accessible to people now?
The reality is it may be more accessible than many people realise and it’s not a process limited for those who have already built wealth. There are misconceptions that firstly to receive financial advice you must have a significant amount already invested before an adviser would take you seriously and secondly, it is expensive. Receiving good quality advice is worth paying for but it doesn’t necessarily need to cost a whole lot.
You see financial advice isn’t just about a full blown financial plan. It can be as simple as finding out what fund or strategy is right for you, finding out if you are saving enough or that you need to increase your contributions to meet your goals. These are all services provided at Fisher Funds at no additional cost.
You will hear more and more about the development of robo advice here in New Zealand over the coming years. Technology will no doubt enhance the delivery of advice and make it more accessible to New Zealanders which we should embrace. At the same time, there will be many who will continue to prefer the traditional face to face model of advice and that will ensure robo advice will complement, not remove the need for human financial advisers.
Don’t feel you have to wait for robo advice to arrive before getting the advice you may need today. We have a great team of advisers here at Fisher Funds that are here to help. You may have a personal relationship with an adviser already but either way, we encourage you to utilise the expertise they offer as I am confident this can add real value to your investment journey.
We can talk you through your options, share our insights based on what other clients just like you might have experienced, and we can suggest solutions to address the financial implications of your investment goals and whatever it is you are working towards. All while doing it with a human personal touch which you certainly can’t get from a robo advice platform.