Australian robo-advisors dismiss ING report

OpinionSavings and Investment

ING's report found 90% of investors would never use robo-advice

Australian robo-advisors are unworried by ING’s new report. 

The new survey by finance giant ING has been dismissed by Australian robo-advisors as failing the history test and being contradicted by other studies. 

ING’s survey, which captured headlines, found that 90 percent of global respondents would never use robo-advice. Robo-advisors ranked below friends, family and even the internet as a source of investment advice. 

“Years ago our parents generation paid for everything in cash and cheque books, people were initially fearful of ATM card technology and online shopping . We now live in virtually a cashless society and online retail is the norm,” Chris Brycki, the CEO of Stockspot, told AltFi.

“The idea that robo-advice can't replace a human adviser is a popular myth but the evidence doesn’t stack up… Robo advice is the fastest growing segment of wealth management and in the next five years it's expected to manage about 5% of all private investments.”

For Harry Chemay, the CEO of Clover, evidence elsewhere suggested the opposite conclusion than that propped up by ING. 

"Honestly, I'm not sure who they interviewed or how the questions were phrased. It's certainly not our experience, or what the vast majority of other studies are finding,” he said. 

“Globally, people around the world are flocking to robo-advice, because it's more convenient, more transparent, and, unlike traditional advisors, there's no up-front cost.

“According to a Telstra study done in 2016, 67 percent of millennials preferred receiving financial advice via digital platforms over in-person… It’s absolutely catching on both globally and here in Australia.”