HSBC to debut robo-advice investment service
HSBC is entering the robo-advice market with the launch of a new online service for wealth management advice
The service will use data and algorithms and will make personal recommendations based on an individual’s circumstances. It is expected to be available by the end of the year.
The bank says this will “open up wealth management opportunities to those who thought it wasn’t for them, thanks to a lower investment entry point”.
The timing is interesting, as recently HSBC published a research report that showed nearly four times as many people in the UK (41%) would trust a robot to perform heart surgery than open a bank savings account (12%).
This is according to its study of 2,000 people in the UK into their trust in technology. In contrast to some extreme scenarios, like surgery and parachuting, just 12% of people would trust a robot to open a savings account for them and only 11% would trust them for mortgage advice.
Also, as reported last week, HSBC unleashed its plot to stop the rise of the technophobe. It commissioned a study of more than 12,000 people in 11 countries and territories looking at their perceptions and use of technology. It was felt a lack of understanding and trust in technology is stalling mainstream adoption of innovative new fintech services.
However, with that all said, HSBC is asking you to trust its new service.
HSBC customers with a small amount to invest will be eligible to use its online investment advice, by logging on via a desktop, laptop or smartphone.
On day one, an algorithm that sits in the background will identify a customers’ financial circumstances, work out their needs and will then recommend a portfolio to meet these needs.