Just as the use of robo-advice has been highlighted in this week’s publication of the FAMR recommendations, out comes news that the Royal Bank of Scotland (RBS) has chopped over 200 advisory jobs.
The FCA statement said: “FAMR also highlights the increasing role that technology can play in creating a more engaging, cost-effective advice market. It recommends that the FCA extend the work of Project Innovate and establish a unit to help firms develop their automated advice models.”
RBS is cutting 220 staff who act as face-to-face advisors. They will be replaced by an automated online service. It appears that only customers with over £250,000 to invest, will be able to speak to a human advisor.
An RBS spokesperson told the media: “Our customers increasingly want to bank with us using digital technology. As a result, we are scaling back our face-to-face advisers and significantly investing in an online investing platform that enables us to help a new group of customers with as little as £500 to invest.”
Some 200 jobs are also being axed in the bank’s insurance department.
It’s likely that other high street banks will follow the example set by RBS and provide robo-advice for customers with lesser amounts to invest.
