FinTech has done it again - this time invading the financial investment world with Robo-Advisors. In case you are unfamiliar with this term, a Robo-Advisor is a digital investment advice system, usually delivered through an online or mobile platform, that provides automated portfolio management services. Robo-Advisors have rocked traditional investment companies with slick user interfaces, low-costs services, efficient on-boarding of smaller investors, and a suite of nifty functions and tools that are bound to please Millennials and other tech-savvy investors.
But is the advent of these Robo-Advisors a bad thing?
The financial industry seems to fall into two groups on the topic of Robo-Advisors, those who see them as an opportunity for growth and those who view them as a threat to their business.
Like most FinTech disruptions, what begins as a competitive threat is often quickly adopted as the new standard. The ability of Robo-Advisors to attract younger investors and efficiently manage smaller investors is a huge boon to investment companies struggling to find new growth areas. Both new and existing investment advisory firms are capturing growth through the innovation of new products. An increasing number of traditional investment management firms have entered the Robo-Advisor advice market as the number of digital advice platforms has grown.
The deployment of highly automated processes allows Robo-Advisors to offer their services while keeping human interaction with the client at a minimum. This does not mean that there isn’t any client support, just reduced interaction and a system-aided “do-it-yourself” platform. Some offer hybrid models pairing financial advisors with the automated system. Automated processes, low human interaction, and low cost investments allow Robo-Advisors to charge lower fees. Some institutions even view Robo-Advisor technology as a possible solution for regulatory issues relating to the Department of Labor’s investment advice fiduciary rules.
Regardless of where you fall on Robo-Advisors, this is an area that is changing quickly and it is vital to have the latest competitive intelligence on the key players.
Informa Financial Intelligence just completed a comprehensive study, The Robo-Advisor Competitive Landscape Report
. This in-depth mystery shop study captures user experiences, platform functionality, best-in-class analysis, and actual screen shots of the current Robo-Advisor key players. For more information, pricing, and to view a report sample, contact a representative at 800.848.0218 or by email at email@example.com or visit www.informars.com/robo