Has financial services reached a robo-advice tipping point?

The findings are more pronounced among younger millennials, with 60% of those born in the 1990s showing a preference for using robo-advisers, compared to half (49%) of those born in the 1980s.

Additionally, the more wealthy the millennial, the more likely they are to lean towards robo-advice. 61% of millennials with £75,000 or more in investable assets agree that they would prefer to take advice from a robo-adviser compared to half (50%) of those with £25,000 - £74,999 worth of investable assets.

Despite this, more than four in five (85%) affluent millennials say that they generally trust financial advisers.

Richard Cobb, private wealth partner at Michelmores LLP, said: “The number of millennials with money to invest and assets to protect is growing. Our research among millennials backs up a pattern we see emerging through clients; that millennials are fast embracing advancing technologies.

“While their trust in financial advisers remains strong, this demographic is likely to embrace advice from varying sources. Affluent millennials are increasingly comfortable using technology to manage their money, believing that it gives them a greater degree of control than using other investment management methods while enjoying the agile investment benefits technology offers.

“This is far from the end of traditional financial advisers though as we are increasingly seeing new clients looking for hybrid support, with face-to-face professional advice supported by real-time reporting technology to help achieve their investment goals. The relationships financial advisers have with their clients facilitate an in-depth understanding of their needs and challenges – robo-advice simply isn’t there yet.

“As affluent millennials become wealthier and more directly engaged with their money, the financial and legal sectors have an opportunity to evolve their offerings to differentiate themselves from online platforms while communicating their value-add services. This will allow clients to benefit from the efficiencies that new technologies can offer, as well as receive more complex and ‘holistic’ professional advice in person.”