Robo-advice profits ‘too low’ says Roger Brosch

The profits made by robo-advice are ‘too low’ at the moment to justify launching a service, according to national advice firm Foster Denovo.

‘It will be three to five years yet before it is something that we will bring in to Foster Denovo. At the moment the profit margin is too low and it makes more sense to wait to see the best models that are developed,’ Roger Brosch said.

He said life company Liverpool Victoria’s (LV=) investment in robo-advice firm Wealth Wizards showed there was an opportunity for growth.

‘The fact that LV= invested in online pension advice service Wealth Wizards last year is a good sign for the area,’ he said.

Read the full article on New Model Adviser.