Business

Women Turn To Robots For Financial Advice

Female investors in Australia have turned to the robots when they go to find financial advisor, citing a mix of the fallout from the recent banking Royal Commission alongside the empowerment of the #MeToo movement.

Robo-adviser Six Park released data on their investments, which show that accounts held solely by women have spiked to more than double within the past few months, up to 40%, up from 20% in January. The firm delivers financial advice online using algorithms and tech instead of the traditional human financial adviser.

The majority of Six Park’s accounts are held by people in two age ranges: 26-35 year olds, and 35-50 year olds. On average, account sizes sit at $31,761 and $43,342, respectively. Meanwhile, females invest an average of around $55,000 across all age ranges.

Fellow robo-adviser Stockspot have been experiencing a similar trend, where one in three account holders are female, compared from 20% from 2016. New interest from women investing via Stockspot have also gone up by 65% since 2015.

Some robo-advisers have decided to be proactive, actively targeting women with specific marketing activities, with many saying that the female investor market is a ripe opportunity for growth.

According to Six Park Founder and CEO Pat Garrett says that fear is one of the big reasons why women don’t invest, pointing to the recent Royal Commission into financial services, which have stigmatized traditional financial services. He adds, saying that women are doing their research, and are looking for alternatives to leaving money in the bank, which is why they try to find financial advisor, or a robo-adviser.

Robo-advice sites appeal to the Aussie passion for tech, on top of potentially having lower fees compared to traditional options. Canstar research states that a financial adviser could charge around $1,500 to prepare a statement of advice, plus $1,000 for implementing the advice.

Advisor Ratings, an Aussie rate and review site for financial advisers, have been working to add robo-advisers to their listings.

CE Wealth at Adviser Ratings, Mark Hoven, says that the traditional financial advice industry is currently suffering from an image problem, that much is clear, on top of the findings from the 2018 Royal Commission.