Alternatively, investors can cut straight to the chase by firing up a platform or app, choosing from a range of risk attitudes and letting an algorithm determine an asset allocation.
Naturally, this assumes users truly understand their own objectives, their appetite for loss and what risk is actually all about.
I should stress at this stage that I am not implying this kind of tech is utterly devoid of merit.
I get that it is a groundbreaking, potent mechanism for opening up the sphere of investment to a broader audience.
Yet it is safe to say it does nothing to close the advice gap. In many ways, it perpetuates the notion that professional advice is frequently unnecessary. And I think that is a dangerous direction of travel.
Advised platforms: opportunity and obligation
When all is said and done, there are really only two means by which tech can manifestly help address the enduring scourge of the advice gap. One is robo-advice and the other is advised platforms.
The former represents a pretty significant step up from the basic “select your risk attitude” model. It can be useful for retail investors who want a cheap and relatively informed route into the market.
You will not be unduly surprised to learn, though, that I favour the other option.
Advised platforms offer the best of both worlds, because they harness the power of tech while retaining the human element that unlocks genuine expertise and generates trust.
The tech component is there to make life easier for all concerned. It gives clients the degree of control they desire. It handles the “heavy lifting” for advisers and allows them more time to focus on engaging with the people who value their insight and experience.
Crucially, it also acts as an engine for strengthening relationships, encouraging dialogue and fostering co-creation. These are not benefits that are startlingly obvious in other settings.
Of course, tech alone will not miraculously make the advice gap disappear. History suggests all sorts of stars will need to align if we are to at last pull off that particular trick. But it will undoubtedly have an enormous part to play.
As platform providers, we have to recognise that this presents us with a huge opportunity.
Maybe, even more importantly, we have to acknowledge an ever-growing obligation to keep delivering products that are innovative, intelligent and inclusive.
Steve Andrews is chief executive of Novia Global
