Recent entrants in the field of retail wealth management showcase the rise of the robo-advisor concept. Robo-advisor solutions aim at servicing part of the population with a focus on an online-digital user experience.

This whitepaper analyzes the merits of the robo-advice concept in the lens of its societal value and underlying approach to delivering wealth management services. The expected evolution of the concept and the technological implications are also addressed.

Topics addressed in this essay include a look at:

Robo-Advice Today

Robo-Advice and the Internet Generation

Not just for younger, digitally-savvy Millennials who have smaller investment portfolios, robo-advice has captured a much broader investor audience of all ages who are comfortable with consuming information in the digital world. 

The Robo-Advice Market Today

Sizing up the market and reviewing market penetration and growth projections in the robo-advice space.

Robo and Traditional Advice Working Together

How robo-advice 1.0 can support advisor services, creating a hybrid approach to investing. 

Upcoming Robo-Advice Technologies

From Robo to Virtual

Looking at the differences between “robotic” and “virtual”, we can expect the next generation of robo to offer more of a virtual advisor concept, as well as dealing more complete and rewarding digital conversations.

From Customized to Personalized

The next generation of robo will take advantage of new technologies to not only customize but to personalize advice, amplifying their own value by delivering what could ultimately be exact advice.

Technology delivers strong societal value as it helps bring financial health to a larger portion of the population with a higher level of pertinence and relevance.

Robo-advice 1.0 is not at par with physical advisors’ capabilities at this point, but upcoming technology will close that gap rapidly, adding to the societal value of consumer wealth technology. Upcoming tech innovations are as much in the user experience aspect as they are in data-driven, value-of-advice centric, personalization algorithms.

With that perspective in mind, investment firms and advisors will consume more and more technology, making all technology investments viable and valuable. Giving clients access to digital tools and information builds trust and strengthens client relationships, leading to an engaged and educated investor/saver community. A consumer-driven approach to delivering financial services will predictably be at the centre of many upcoming technology innovations.

There’s a strong view that robo-advisor technology is ideal for younger, digitally savvy Millennials who have smaller investment portfolios. However, we now know that the real market for robo-advice is much broader and includes investors of all ages who are comfortable consuming information in the digital world.

Robo-Advice Whitepaper

To learn more, download the full whitepaper – Societal Value and the Future of Robo-Advisor Technology – by clicking here.