A third of brokers say robo-advice their biggest threat

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More than a third of brokers see the growth of robo-advice as a threat to their business, according to research by Legal & General Mortgage Club.

Nearly four out of 10 brokers (38 per cent) see the rise of robo-advice as the biggest threat to their business in the next three years.

Around 88 per cent of brokers say they need to invest in technology to stay competitive over the next two years.

L&G says a similar number (87 per cent) plan to add new technology, services or products to their offering to diversify their business in the next 12 months.

L&G Mortgage Club director Jeremy Duncombe says: “Rather than viewing developments like robo- advice as a threat, advisers should look at how new technology can help them to stay one step ahead of the competition.

“Above all else, brokers must ensure that they are using every tool available to provide a modern, holistic service that meets the requirements of their customers throughout all aspects of the market, whether that be for mortgages, remortgages, second charge or buy-to-let products.”