Brits with a penchant for digital are Europe’s keenest exponents of tech. Even so, they are still on the lookout for innovative digital ways to better control their investments – this despite or because of the shenanigans over the past 12 months courtesy of the Coronavirus pandemic.
The sources of this revelation are eToro’s investment platform and Cebr – the Centre for Economic and Business Research.
The Coronavirus Effect
When the pandemic took hold here in the West, it sent a shock wave of enormous proportions through world markets. Industries shuddered to a jarring halt. Travel and hospitality became pretty much nonexistent, and energy shares crashed.
But, every cloud has a silver lining, so they say. Where professional investors sat back nervously, entrepreneurs who could see what was happening and how the hardest hit retail sectors might react once things were back under control began to make their moves.
The Fintech sector, in particular, is benefiting as more and more people are prepared to embrace digital transformation, and it is the younger generation leading the way.
Brits are Leading the Way
A recent survey of Brits showed that while just 10% of people were opposed to the growth of Fintech, an overwhelming 60% are in favour. Of this percentage, 63% are in the age group 25 to 54, while 55% are over 55s.
Online banking and mobile payment uptake are encouraged because of COVID-19 restrictions, but it is the improvement and acceptance of automated investment technology that is standing investors in good stead with most of the industry still struggling to back on its feet.
Where Automated Investment Technology could Lead Us
A research program recently carried out by Deloitte using 2,000 respondents looked into the markets where so-called “Robo Advisors” could cause disruption. The markets they examined were:
- At retirement
- Specific contributed pension saving
- Everyday financial planning
- Investing
- The mortgage market
- Protection for the individual
Deloitte believes that the UK provides an excellent opportunity for automated investment technology and platforms with as many as 15 million consumers ready to pay for these services.
Forward-Looking Financial Advisors Now Reap the Benefits
Businesses that have made investments into hardware and software that facilitate the running of automated investment platforms that can provide on-channel advice are now beginning to reap the benefit through heightened client satisfaction.
Clients who are advised via their preferred channel and as and when they need it are more apt to be satisfied and are therefore more likely to stay put. The automated investment platform’s job is to identify what the client wants and find the right investment opportunities.
The Day of the Pen and Quill is Long Gone
Investment platforms and advisories that rely on paper, with manual sign-offs and wet signatures, find it almost impossible to do business in the current climate. On the other hand, advisories that have gone ahead and invested in automated investment platforms can conduct their business unaffected.
How Tech-Savvy Brits are Using Fintech Automation
There are three ways in which tech-savvy Brits are turning to automation to help them in these challenging times, and the consensus is that this will continue to gather pace even when things return to the new normal.
- Consolidating and reducing debt
- Switching savings to auto-pilot
- Automatic budgeting
The fact of the matter is that in recent years Brits have become accustomed to organising various aspects of their personal finances from the comfort of their own homes. Furthermore, with the advancements in mobile technology and the arrival of 5G, many Brits are taking to checking and managing their finances on the hoof.
The Proof is in the Statistics
The research carried out by eToro found that 32% of adult Brits have increased their use of technology during the Covid 19 pandemic. Of this number, 33% – the over 55-year-olds – maintain that because of the pandemic, they have learnt new technical skills, with many saying how this has made their lives easier.
When financial uncertainty strikes, as it has over the past year, many people find the temptation is to keep an eagle on their finances and try to micromanage them. It’s an understandable reaction but one which involves a lot of personal time and generates a considerable amount of stress.
Making use of automated investment platform technology can help you to get a firmer grip on your finances with much less hassle. You may also find you can generate unexpected savings.
Finding the Best Automated Investment Platform
There is no magic formula for finding the best robo advisors. As demand has risen, so has supply, and you will find plenty from which to choose. The Investing-Reviews website publishes a best-of list.
Being number one on the list doesn’t necessarily prove anything other than the company has a large advertising spend. It’s very much a case of finding the right automated investment platform that suits your individual needs and expectations. One thing that will gladden the hearts of many investors is that robo advisors charge less for their services than their conventional competitors.
