The exchange traded fund arm of Invesco is weighing up the launch of a robo-advice platform in Europe following its acquisition of a US-based digital advisory firm Jemstep last January.
Byron Lake, head of Invesco PowerShares for Europe, the Middle East and Africa, says the firm is “evaluating” whether it can offer a similar robo-advice service in Europe.
According to Ignites Europe estimates, there are now as many as 70 robo-advisers in Europe, although the exact number depends on how these services are defined.
Large European banks, including Deutsche Bank, Barclays, ING Diba, Santander and Union, which is part of DZ Bank, have either developed or are reported to be developing robo-services.
The arrival of potential new robo-adviser entrants in Europe comes as experts predict rapid growth for these platforms during the next decade.
The UK’s Financial Conduct Authority has also acknowledged the importance of robo-advice and will this month launch a dedicated unit to support the development of “automated advice tools that can help provide low-cost, high-quality [financial] advice to mass-market consumers”.
The real promises of robo-advise were analysed in research by BETTER FINANCE stressing its importance as it is one of the few channels available to sell ETFs in Europe with a fee-based model that reduces the conflicts of interest in retail distribution. Moreover within the ongoing environment of low capital market returns these new players could make a real difference on the actual performance of financial advice and investment management and protect the purchasing power (the real value) of people’s savings.
Please read the full article from the FT here.