The death of the face-to-face adviser has been exaggerated, according to Thomas Miller Investment MD Matt Phillips.
A debate has been raging in the sector about the future of online and automated advice.
FCA chief executive Martin Wheatley has said he wants to explore whether strides forward in artificial intelligence can help deliver more automated advice and contribute towards solving the 'advice gap'.
{desktop}{/desktop}{mobile}{/mobile}
A number of online advice firms have been launching over the past couple of years, including Wealth Horizon, set up by IFP board member Chris Williams CFPCM, and SaidSo by IFP Surrey branch chairman Keith Churchouse CFPCM.
Mr Phillips believes artificial intelligence will aid rather than kill off human advisers.
He said: “Technology will only enable more human interaction, not less. We see the wealth manager and robo-adviser working alongside each other.
“The death of the face-to-face adviser is exaggerated. Clients will fall in to broad categories such as those that simply do not wish to manage their financial affairs and will have a wealth manager to advice on all or most parts of their Financial Planning. On the other hand there will be others who will do most things online but will get to a point, possibly when they have accumulated enough funds or because their circumstances change, and they will want to talk to someone to ensure they are doing the right thing.”
Automated forms of advice will be dominated by the big institutions such as insurance companies and banks in years to come, he believes.
He said: “Over the next five years, ISAs and personal pensions will be taken up cheaply online through a decision tree and via a provider or even a supermarket. However, the problem for consumers will be the amount of choice made readily available to them.
“The online robo-adviser is an advised product sale, if people feel they should be saving more they will for example take out an ISA. However, I struggle to see a decision tree dealing with complex issues for an individual who is retiring.
“The rise of the robo-adviser is a positive for consumers and advisers. It will mean more people will be engaged in savings and that will lead to more opportunities for advisers. It should be welcomed by all and not feared.”
Mr Williams, owner of Wealth Horizon, speaking to Financial Planner magazine earlier this year said: "Going forward, we feel that there will be a real need for smart, online advice processes that reduce the need for advisers (but not eliminate it altogether), but which still provide clients with the reassurances typically associated with face-to-face advice.”