Stockspot issues robo rogue alert

02-Oct-2015

By Kristen Crawford

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The recent boom in fintech innovation has the potential to attract people for the wrong reasons and if onlookers do not scrutinise start-up businesses, consumers could be burnt, according to automated investment adviser Stockspot.

“Any industry that’s hot, be it mining or now fintech, attracts good operators and bad operators, and we want to be focused on the consumer being able to, as easily as possible, work out the difference so they don’t get hurt,” Stockspot chief executive Chris Brycki told financialobserver.

“There seems to be a new group popping up every week claiming to be fintech innovators or robo advisers.”

Brycki believed there could be some “dodgy” robo-advice services in the pack and if one went badly, everybody in the space would get a bad name.

Because of this, both the industry and the media needed to play their part in watching closely what was going on, he said.

“We don’t want consumers to get hurt because it will reflect badly on our business and the entire fintech community, especially if these other businesses say they offer the same or similar service as us,” Brycki said.

“There are a lot of small things that we do to try and differentiate ourselves but they are often things consumers won’t always be able to appreciate or realise.

“For example, everything is held by our clients in their own name, and we never have control over it, but there will be other businesses that set up that aren’t like that.”

Consumers will not always know to look out for such factors, he said.

“Financial services is an area where people outside the industry don’t have the same information and knowledge as people inside, so unfortunately it’s quite easy for consumers to be tricked,” Brycki warned.

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