FCA has published an occasional paper that looks at the results from a robo-advice experiment which asked customers to make borrower repayment decisions. It drew several interesting conclusions, including that:
- the average willingness to pay for advice was higher than the interest and fees it saves, which suggests to FCA that there is a significant mental cost to making decisions;
- access to free robo-advice significantly improves repayment decisions; and
- despite explanations being given, consumers learn little from robo advice, so would be likely to need the same advice again.