Your next financial adviser may be more like Metal Mickey than Michael Milken. If reports we're hearing are true, a combination of artificial intelligence and a drive to keep down costs means that many forms of financial advice may be taken over by machines.
Your robo-adviser will gather the Know Your Customer (KYC) data, profile you, and make suggestions based on deep data and sophisticated algorithms.
Forbes describes the introduction of robo advisors as inevitable and transformative, but emphasises that investors will expect 'Robo-Advisors With A Human Touch' That seems reasonable to us, given the progress search engines have made in delivering personalised results to our phones. Anna Irrera, writing in Financial News, looks at some of the robo-advisory startups that are planning to disrupt the industry (requires subscription), including Money Farm .
Although it is only the beginning,
wealth managers should react,
as this hybrid service model will
likely become the new-norm
Robo-advisors are not for everybody. Sceptics have already dubbed robo-advisors 'The Ryanair and Easyjet of investment management.' But if you find this an interesting area, please browse this 8-page report from Deloitte, which we have added to our research library.