The difference between Robo-Advice and Digital Advice

When moneyGPS launched its digital advice service to the market, in most of our earlier presentations we were constantly asked “So you offer Robo-Advice?” Clearly not!

Let’s look at the key differences and misconceptions between Robo vs. Digital vs. Comprehensive, with the key differences between the three propositions lies in the delivery, customisation, and the role of human interaction.

Looking at it another way the spectrum of advice models can be summarised as follows.

An example of how digital works in practice can be viewed via the following 10-minute video.

The Importance of ‘Hybrid’ Digital-Human Advice.

A critical area which needs to be tabled is the growing use of a Hybrid based Digital-Human advice service.

Adding to the comments already provided to the summary above; This Hybrid ‘Digital-Human’ option is becoming more important in offering an experience that delivers the best of the tech with a human element – a critical and a key differentiator in delivering digital advice globally.
It also has to be remembered that the great majority of users of digital advice come from a background of having: minimal and simple advice needs, limited financial literacy, not familiar with using digital financial tools and have never met with a financial planner – primarily due to lack of affordability.
Bringing the human factor into the digital advice equation, offers the ‘safety-net’ reason to use the tech and feel more comfortable about doing so.

To summarise the key differences between Robo-Advice and Personal Advice provided by digital means lies in the following key areas:

Degree of Personalisation: It is minimal for Robo as it only covers investment advice, however is fully personal advice via Digital.
Level of Human Involvement: It is nil for Robo but available via digital.

Call the moneyGPS Concierge service direct on 1300 24 24 42, to find out more on how the use of digital advice can assist your clients, and help grow your business. Or book a no-obligation online meeting with one of our Concierge Team Members.

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accountantsGPS and moneyGPS SaaS products provide affordable, compliant digital advice and SMSF services, to Australians through; Institutions, Accountants, Financial Advisers, Superfunds and Employers.