Exploring the impact of robo-advising on wealth management

In this article, we examine the strengths and limitations of robo-advice today, explore various options for leveraging robo-advice capabilities and explain how wealth management firms can successfully integrate robo-advice into their business models.

The concept of “robo-advice”—the use of automation and digital techniques to build and manage portfolios—is attracting attention. Not only does it present an opportunity for wealth management firms to tap into underserved markets and increase advisor productivity, but it also opens up the industry to new competition.

That means, the automated system is working without a counter or a supervisor who is usually charged a lot. As the system is created by professional advisors, be sure you are supported and advised by the smartest financial managers and you have it in such a convenient format and price. So that means that less-wealthy investors have opportunity to create and work with low-cost portfolios. Robo-advisor gives a great way to take part in financial investment for people of any kind of financial level.

Depending on their size and positioning, firms may choose to build their own offerings, buy an independent robo-advisory firm, or offer “white label” services or a branded industry solution. Success will depend on:

Getting the offering right.
That includes deciding what kind of experience your firm wants to offer investors, how to price robo-advice services, and whether to position robo-advice as a stepping-stone product or a standalone service.

Developing an effective distribution strategy.
Part of the appeal of robo-advice services is their potential to attract millennial clients who have fewer assets to manage. Firms must decide whether to roll out this new offering under their established name or introduce a new brand.

Getting the advisor force on board.
Firms with advisor forces in place must determine how traditional advisory services and robo-advice services will work together. Used effectively, robo-advice capabilities can free human advisors to focus their efforts on larger opportunities.

Besides, the adviser is accessible for other industries such as insurance, health real estate or health care. Whatever you want to be sure in, robo-adviser is necessary in any sphere of life. The function of the service is to get to know the appropriate customer, their websites or apps and analyze the risk profile for future interaction. All the data are requested from the singing up process so there is no need for human actions to understand what the client is seeking with its investments. The profile of a client allows the service making recommendations of investment.

So if you have just started business it’s a great tool for you to invest more money because the service is low cost but smart as an offline advisor with good experience. You just create your profile and move on a scale from saver to investor. Simple and secure.

Jun 09th, 2018