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3 Reasons Why Robots Will Not Replace Human Advisors in the Financial Advice Industry

Posted by Moira Do on 10/1/19 12:06 PM

 


Automation has given rise to Robo-Advising, a new technology that uses algorithms to aid in investment decisions, including those related to impact investing. What is an algorithm, and how does it offer financial advice? An algorithm is a process or set of rules to be followed in calculations or other problem-solving operations, usually done by a computer. In financial services, a Robo-Advising algorithm is mainly used for non-complicated portfolio management. Clients can choose from a wide range of companies and services with a lower minimum initial investment than most traditional financial advisors. The account fee is low to zero, which attracts a large swath of clients who typically find an advisor’s fee as a cost-prohibitive barrier. As this technology becomes increasingly popular, there have been talks about the replacement of the human financial advisor.

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Topics: Financial Advisors, Artificial Intelligence, Robo-Advising, Automation, AI, Robo-Investing

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