Earlier this month, Bridging & Commercial Distributor reported that in the future computers may be able to analyse spending habits and internet searches to predict if a client needs a mortgage.

However, Diederick van Thiel, CEO and co-founder of AdviceRobo, explained his firm already uses transaction data, contact information and psychological analysis to predict customers’ loan activity.

“The technology to predict consumers’ behaviour is already there!

“The near future – as KPMG states – is not next year or so; it’s today.”

In June, the Financial Conduct Authority launched an advisory unit to offer regulatory feedback to companies developing robo-advice technology.

Research conducted in-part by AdviceRobo found that 83% of lenders see robo-advice as their future.

Meanwhile, 75% said big data improved credit assessments. 

Despite this, Diederick admitted that some customers were not convinced of the benefits of such technology.

“With current data-driven technologies, predicting who needs a mortgage at a certain moment is not the most difficult thing any more.

“The challenge is more in customer understanding and acceptance of it.”

Indeed, Michelle Westley, head of marketing at Brightstar, explained that though robo-advisers could benefit their human counterparts, the use of personal data could raise questions over privacy.

“Technology clearly has a place in finance, and there is definitely a need in terms of assisting the intermediary and the client by streamlining processes.

“[However,] people are often reluctant to have their personal details revealed.

“In terms of ethical issues and data protection, this is clearly a question for society as a whole, as the use of personal data and preferences to target advertisements and products does, in my opinion, feel like a thin end of the wedge.”

Last year, industry figures warned that robo-advisers would struggle to replicate the human interaction offered by brokers and other intermediaries. 

Michelle agreed, suggesting that many customers may not be comfortable interacting with a computer.

“Technology is reshaping the workforce in some sectors such as the supermarket industry and consumers are open to this and have adapted really well.

“However, I am not convinced consumers will be so quick to adapt to completing such an important transaction without the comfort of speaking to a qualified human adviser.”  

Nevertheless, with smartphones increasingly becoming part of our daily lives, Michelle admitted that people must find a balance between privacy and practicality.

“This begs the question: does this make life easier or more open to abuse?

“It is a very big question indeed and I think it is about finding a balance between the two.”