Robo advice is hailed as the next big thing in financial technology – but only one in five customers trusts what a robot tells them.
Bank HSBBC found customers were reluctant to see robo advice and preferred discussing their finances with a human.
The research asked more than 12,000 customers in 11 countries for their opinions about banking with a robot – specifically with mortgage advice in mind.
Even fewer that one-in-five would trust a humanoid robot programmed to find them a home loan. Only 8% felt comfortable when offered the option, while 41% trusted a human adviser.
A humanoid is a robot designed to look like a person.
Fingerprint and voice recognition disliked
The bank also found more customers in India and China would deal with robo advisers than in Europe.
Overall, 76% disclosed that financial advice was important, as is advice generated from an artificial intelligence (44%).
John Flint, global chief executive of HSBC retail banking and wealth management, said: “Digital demands vary from customer to customer and market to market, but the long-term direction is clear: customers should be able to bank with us when they want, in the way that they want.
“At HSBC, we want to apply proven digital technology to make our customers’ experiences simpler, better, faster and more secure. We will continue to adapt as their needs change, to provide banking services on their terms.”
HSBC also revealed that most people distrust fingerprint and voice recognition software.
Personal data security
The data also confirmed only 11% of customers would trust an online chat service offered by the bank when opening a savings account and the least understood technologies include blockchain, automated investment advice and finance apps integrated into social media networks.
“Digital technology is rapidly evolving and customers are now able to bank more simply, quickly and in the most secure way possible,” said Flint.
“While people say they place value in the security of their personal data, they do not yet understand that adopting new technologies can help them to protect their information. Our research shows many people do not understand new technologies and so are unable to trust them.”