Why automated advice is the future of personal finance

With the advent of fee-based financial advice, and little help on offer from the high street banks, many people are forgoing proper financial advice because they think it’s out of their price range. For investors seeking regulated but low-cost advice, the answer may lie online.

Financial advice for the few

Since 2013, changes brought about by the Retail Distribution Review (known as RDR) have meant that financial advisers can no longer collect a commission on the products they sell to clients. Instead, they must charge a fee for financial advice.

While, for the most part, these changes have been welcomed by the industry and consumers, there’s a risk that fee-based financial advice can create a barrier to entry for some investors. Those on middle and lower incomes, or with a relatively small amount to invest, may be put off by the cost of expert, regulated advice. Coupled with this, most high street banks no longer offer any form of financial advice, leaving the average consumer with even fewer options.

A 21st-century solution

Now that we conduct more and more of our lives online, it’s perhaps no surprise that technology has come to the rescue. Online automated advice services have sprung up to help investors with smaller amounts (typically between £1,000 and £50,000) find simple, low-cost ways to invest into ISAs and other investment accounts, without paying for a face-to-face consultation. There’s no initial cost for advice, only an affordable ongoing administration fee; and investors get the full protection of regulated advice.

Just like in-person advice, online automated advice is tailored to your circumstances. After answering a few questions about your personal preferences and goals, you receive regulated, automated advice on which product best matches your investment needs. And because automated advice provides a one-stop solution, you can invest immediately and complete the transaction securely online.

At Generation Financial Services, we believe automated advice will transform the personal finance industry and help more people than ever invest their money wisely. Head to our automated advice platform to find the ideal investment product for you.