Only 3% of UK adults have used a robo-advice service in the last 12 months as the number of players in the market proliferates, according to consumer research published by the Financial Conduct Authority’s (FCA).
While the figure is low, it is triple the meagre 1% reported in 2017.
Respondents to the survey were asked to state whether they recognised any online investment or pensions service from a list of providers.
The changing shape of the consumer market for advice report said: “The market for automated online advice is still in its infancy, but the number of players active in the market and services available to consumers has increased dramatically in the last few years, and this innovation is expected to continue apace.
“We are aware that automated online advice is a difficult area to define to consumers, given the similarities with other online services.”
While few respondents used a robo-adviser, the number that had heard of online investment or pensions services had increased substantially from 10% to 38% between 2017 and 2018. The study noted that some of this increase could be down to the “re-contact nature” as respondents would be aware of providers because they’d already been named in the 2017 survey.
Use of regulated advice in the UK
The study revealed 4.5m of UK adults had accessed regulated financial advice in the last 12 months, up from 3.2m in 2017.
The types of people accessing regulated financial advice are not materially different from 2017, with more men than women accessing it. The propensity to have had advice increases markedly with age, wealth, and education level.
However, nine in ten (91%) UK adults aged 18 or over, approximately 46.5m, have not had regulated financial advice in the last 12 months. Of these, two-fifths (39%) have £10,000 or more in savings and or investments.
