Robo-adviser vs financial adviser: which is right for you?
An automated investment service can be efficient for a narrower investment need. Human financial advice can incorporate a much wider personal situation and make a tailored recommendation.
What people usually mean by robo-adviser
The term is commonly used for digital investment services that use questionnaires and automated processes to place customers into investment portfolios or provide a simplified digital journey. The exact regulated service varies by provider.
What a human adviser can add
A financial adviser can discuss competing goals, pensions, retirement income, business ownership, family circumstances and other complexity that may not fit neatly into a standardised investment questionnaire.
Compare total cost and scope
Digital services can be cheaper, but compare investment, platform and service costs as well as what advice or support is actually included.
Complexity is often the deciding factor
If the main problem is choosing and maintaining a straightforward investment portfolio, a digital route may be enough. If several financial decisions interact, personalised advice may be more useful.