Robo-Advice – The Rise Of The Machines

Intro

This blog will cover the impact and opportunity of Robo-advice on financial advisers and the public.

What Does Robo-advice Mean?

‘Robo advice’ is big news currently as a relatively new concept. Good Robo-advice provides cutting edge technology that enables investors to benefit from the real world expertise of wealth managers. The service delivers portfolios founded on top quality asset allocation designed to meet the investment objectives of the investor at a cost effective pricepoint.

An individual responds to a short list of simple questions to assess their investment requirements which then drives the construction of an institutional quality investment portfolio suggestion that the investor can accept or decline. This process can take as little as a quarter of an hour.

Why Is Robo-advice Required?

The vast majority of personal investors handle all or part of their investments themselves. This ‘Do It Yourself’ method requires a lot of time and can be very risky even for those with investment experience.

There are also vast swathes of people who would like to have an investment acccount managed by an expert but for whom the use of an IFA is too expensive. These people end up with cash in the bank which does not deliver growth objectives over time. Robo-advice gives these disintermediated investors the opportunity to own a top quality investment portfolio which they otherwise would not have had. The FCA are vocal advocates of Robo-advice for this very reason.

What Next From This Blog?

Ongoing blog posts will cover the history of Robo-advice, how to choose a Robo-adviser plus more detail on how Robo-advice can revolutionise the personal investment landscape for investors and financial advisers.