Article Written by Ian Kilbride. The emergence of financial technology (Fintech), has presented many new and exciting opportunities, one of which is robo-advice. Robo-advice is a type of financial advice provided to the investment and wealth management industry via an online platform with little or no human intervention. Often this is conducted through an online automated investing service. As the investment industry has become more efficient over the years, the focus on cost-cutting has become more prominent, resulting in numerous financial services groups launching online robo-advice offerings. With these developments, the consequential question is, “Is robo-advice the future”? To answer this question, we need to look at significant market trends, as well as the positives and negatives of personalised financial advice and robo-advice. Robo-advisors generally target younger individuals below the age of 30. These younger individuals often do not yet have significant lump sum and thus seasoned financial advisors sometimes leave them underserviced. Rather, seasoned financial advisors typically remain focused on higher net worth individuals and receive a financial advisory fee for their services. Moreover, younger people are generally more tech-savvy and comfortable with online electronic applications. Yet, an important aspect to this question is whether people are willing to […]
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