Robo Doubt: IMCA Members Skeptical On Rise Of Financial TechnologyRobo Doubt: IMCA Members Skeptical On Rise Of Financial Technology

Ryan W. Neal

Members of the Investment Management Consultants Association are divided on the impact that automated investment asset allocation tools – often called “robo advisors” – are having on the advice and wealth management industry.

In an annual survey of member trends, half of IMCA’s members reported that robo offerings will displace unproductive and “low-end” advisors, but don’t think they will have an impact on the best advisors. Thirty-seven percent said that robo-advisors don’t pose any threat to their personal business, but only a mere 4 percent believe that the trend is "a flash in the pan that will not last." 

“These beliefs about the role of technology and the changing nature of investment advice underscore the need for advisors to grow their competence and earn advanced certifications,” said IMCA executive director and CEO Sean R. Walters.

Only 40 percent of IMCA members agree with the notion espoused by some in the financial technology world that automated tools can complement human advisors and help scale the business.

They also don’t agree that technology is the way to reach future investors. Only twenty-nine percent of IMCA members agreed that younger clients are likely to use robo-advisors.