Financial Planning
One third of Australians trust robo-advice

New research reveals about 30% of Australians would trust a robot to offer them financial advice over a financial adviser.

According to research commissioned by think tank Thinque, about one third of Australians would accept robo-advice as their faith in the human side of the financial services sector continues to waver following the Banking Royal Commission.

Futurist and innovation strategist Anders Sorman-Nilsson said: "Previously, Australians have trusted digital tools with purely transactional activities such as mobile payments."

"However, when it comes to more strategic life advice, we are now beginning to trust artificial intelligence to advise us in sectors such as health and travel, and increasingly we are entrusting robots in the banking and finance sector, as many Australians distrust in human advisors has mushroomed in the wake of the Royal Commission."

Financial advisers in particular need to focus on rebuilding public trust in the digital age, he added.

"They have lost their voice and partially forgotten to story-tell and build a narrative of trust - digitally - and are thus failing to re-engage Australians - at a time when more Australians than ever actually need financial advice," Sorman-Nilsson said.

In recent years, the fintech sector and its seamless solutions have grown digitally empathetic which has also led to their mainstream adoption, he added.

Despite the groundswell of trust in robo-advice, the Thinque research found fraud was still a key concern for the public when it came to trust in the financial services sector.

About 80% of respondents said financial services is the sector where they were most concerned about digital fraud.

A further 41% of those said their reason for feeling this way was because they think that the greater amount of data transactions online means that information can get into the wrong hands.

Read more: AustraliansThinqueAnders Sorman-NilssonBanking Royal Commission
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