Briton’s perception towards robo-advisors and AI – concerns, trust, and more
February 28th, 2023, Kineree Shah

Briton’s perception towards robo-advisors and AI – concerns, trust, and more

In recent years, the financial industry has undergone a technological revolution that has transformed the way investors manage their portfolios. The emergence of robo-advisors in the UK has played a role in this transformation, using advanced AI algorithms to analyze customer data and provide personalized investment recommendations.

To gauge the level of awareness, interest, and trust in robo-advisors in the UK, YouGov conducted a poll of 2,017 Britons. We also aimed to identify the key factors that play a crucial role in selecting a robo-advisor in the UK to help brands gain valuable insights on the current state of robo-advisory services and their potential for future growth.

Our data shows that a tiny share of consumers currently use a robo-advisor, while an equally small percentage of respondents have used a robo financial advisor in the past but do not currently use one (2% each). The majority of consumers are not aware of robo-advisors and are uninterested in using one (73%).

However, it is worth noting that about a tenth (9%) of consumers who are unaware of robo-advisors are interested in using one. This indicates that there is potential for growth in the robo-advisory market by increasing awareness about the service among potential customers.

When it comes to trust, a significant proportion of respondents are less likely to trust a robo-advisor compared to a traditional financial advisor. But our data also reveals that about a third of Britons (29%) have a different outlook. Among them, less than a tenth (8%) are slightly more likely to trust a robo-advisor than a real-life version, while one-fifth (21%) say there is no difference in their level of trust between a robo-advisor and a traditional financial advisor.

So, what factors would consumers consider when choosing a robo-advisor? A quarter of respondents polled (26%) say that security of investment was the most significant consideration, followed by cost (24%). The reputation of the financial advisor (20%), level of customer support (17%), personalised advice (16%), and minimum investment amount (12%) were also some other important factors. About one in 10 consumers would also seek out robo-advisors that offer ethical investment options (10%), and regularity of re-balancing and client reporting (10%).

Our findings reveal that brands offering robo-advisory services could benefit from taking a customer-centric approach that emphasises low-cost and secure investment options to attract potential customers. Establishing a strong reputation is also critical in winning over customers who are concerned about the trustworthiness of robo-advisors.

In related news it may be worthwhile to understand American’s perception towards robo-advisors.

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YouGov Surveys: Serviced provide quick survey results from nationally representative or targeted audiences in multiple markets. This study was conducted online on 20th to 21st February 2023 with a nationally representative sample of 2,107 adults in the UK (aged 18+ years), using a questionnaire designed by YouGov. Data figures have been weighted by age, gender, education, region, and race to be representative of all adults in the UK market (18 years or older) and reflect the latest UK Statistical Authority population estimates. Learn more about YouGov Surveys: Serviced.

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