Will Robo-Advisors Replace The Human Financial Advisers?
It is possible for people to manage their income more effectively through financial planning website that helps them monitor spending patterns and expenses. Careful budgeting will help an individual keep more of the earnings and use it for monthly expenditures and savings. If there is an increase in cash flow, it can be invested to improve the overall finances.
In January this year, Amazon opened Amazon Go in Seattle, US, a store that has no checkout counters or cashiers. Customers only need to scan their mobile phones and pick whatever they like from the shelves. Technology in retail is replacing humans. This scenario is repeated in different sectors like toll booths and fast food service. Can robots take over the job of financial advisor?
Robo-advisors are starting to gain popularity. People are allowed to access the robo-advisors for financial advice on their own terms, whenever they want it without the risks of exposing themselves and their financial situation to a human. There are many instances when an individual is sceptical about seeking financial advice because they want to protect their privacy.
It is inevitable that robo-advisers can change the future of financial advisers. Remember that computers can use artificial intelligence and machine learning including their processing skills to provide financial services. Will financial advisers be redundant like cashiers?
Albert Cucco, chief client solution officer at fintech provider Objectway believes the human element will not completely disappear but there will be a meeting of two worlds that have to adapt to become sustainable. Online financial advisors need to serve offline clients as well in order to gain new customers.
Majority of robo-adviser platforms have found out that it is difficult to be profitable in offering this service which means that they need to expand their offerings. On the other hand, traditional advisors can grow their market share by using technology.
Technology is simplifying the job of financial planning website, not taking it away. Advisors who keep track of their clients information through excel worksheets can use automation for accuracy and speed. Automation will free the time of financial advisors so that they can attend to counselling that requires human interaction.