Aegon does not believe there will be a scale robo-advice player in the UK market in the next five years.
Speaking today at the Money Marketing Interactive conference in London, Aegon chief distribution and marketing officer Mark Till says robo-advice will come into the market to help streamline advisers’ back offices but will not replace the adviser.
He says: “There will be small and niche players serving people who are interested in investing but not serving a great volume of customers. I do not believe that people want to sit in front of a computer, type large amounts of information into it and pay a premium for the computer telling them what to do.”
Till also expects consolidation in the platform market to take-off and predicts there will be just four large-scale platforms in the next three years alongside a smaller number of niche or boutique platforms.
He adds: “At the moment those business that have chosen to exit have managed to find a buyer for those platforms. I don’t believe it is true to say that smaller platforms can’t produce a sustainable business model will always find a buyer and that cause some problems for our industry.”