2019 has been the year of AI. While many companies have been slow to adopt the technology, AI is rapidly appearing in the financial service industry. Financial advisors and RIAs are have already been buffeted by industry changes.
Robo-advisors are in fact, majority of them automate portfolio strategies that fit with some version of modern portfolio theory and build optimized passive indexed portfolios.
Will the robo advisors consume the market in 2020?
AI and related technologies have not replaced human financial advisors and are unlikely to do so, AI will enhance advisor’s analytical capabilities and automate the tasks and reduces costs across the board. AI and other technologies are a tool and advisors who wish to continue to prosper will need to continuously stay on top of these technologies and strategically incorporate them into their practices.
Low Fees: Investors were lucky to receive professionally managed investment assistance for less than 1% of assets under management (AUM). Low Minimum Balances: It’s a boon for investors with a small net worth to get professional robo-advisory management.
They Aren’t yet 100% Personalized:You’re more than just an investment portfolio. You have many goals, both for the near and long term. While many robo-advisors now allow you to set and edit your goals using their financial planning software, you also have money-related issues and concerns which may benefit from a chat with a human being.
Dhanveda by Confluex
Also read: Are advisors necessary to plan your financial goal?