The development of robo initiatives in the UK advice market have hit a wall despite increasing investment in the sector, according to Octopus Investments.
Speaking at an Adviser Home event this week, Octopus Investments chief executive Ruth Handcock said the £1.4bn invested in the global robo market has yielded lukewarm results in the UK at best.
She said: “The investment gives me some hope that models will work but I’m not seeing a lot in the UK. There are firms out there doing well like Hargreaves Lansdown and Nutmeg but most of the success has been in the US market.”
For traditional robo-advisers in the UK, the downfall has been their transition away from purely robo solutions, she added.
“People that started in this market a few years ago with the streamlines technology-heavy robo solutions for advice have headed mostly down the bionic or hybrid advice route now.
“Advice is looked on as a difficult business-to-business market and investors are more interested in tech companies. They don’t see the same kind of future for advice as they can see from pure tech offerings.”
Recent figures from the Octopus Group show 27 per cent of UK advisers have incorporated some sort of online or robo advice into their business as of this year.
Elsewhere in the robo space, newly-launched financial planning app Multiply claims to be the first firm to offer fully regulated holistic financial advice, while Investec has axed its robo solution following losses.