Robo-advisers can never replace human Financial Planners because they lack the ability to empathise and understand a client's hopes and dreams, the director of a Financial Planning firm says.

There has been a growing debate over so called ‘robo-advisers’ as more firms launch online automated advice services. Outgoing FCA chief executive Martin Wheatley has suggested such technology had great potential to help solve the advice gap.

Chris Daems, director of Cervello Financial Planning, based in Rainham, Essex, told Financial Planner magazine that new technology was ‘exciting’ and agreed it offers a chance to help some consumers who fall into the advice gap.

But he sees no comparison between automated advice services and planners. IFP member Mr Daems, who is featured in My Business in the latest Financial Planner magazine, out last week, said: “Personal relationships are at the core of many Financial Planners businesses and the ability to empathise, interpret and understand a client's hopes, dreams and desires requires emotional intelligence.

“This is something ‘robo advisors’ currently lack and the reason why I don’t see them as a threat to the model of the high quality Financial Planners in the market."

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He said: “However in the UK there are millions of people who can’t, don’t or won’t get access to personal bespoke Financial Planning for a number of reasons (including cost). This is where I see technology playing a part.

Technology can and is being used to fill a gap in the market where advice isn’t available or being taken and therefore has the potential to play a part of a healthy savings culture.”

Mr Daems, who also runs the auto enrolment firm AE in a Box with Bridget Greenwood, said: “I think the innovation happening in our sector recently incredibly exciting. I also believe that technology will support the existing market instead of being any sort of significant threat.

“The challenge for firms who have and are developing online solutions is that to build a solution which is easy to use but also accommodates all of the potential variables involved in building a robust financial plan is incredibly difficult.”

He cited LearnVest in the US as his favourite out of those trying to provide this service he has looked at so far.