Robo Advisory

Th di ruptiv natur of financial technology ha tran lat d to mor capital gain and l commitm nt for th av rag inv tor. Robo ad isory ha grant d inv tor acc to rvic that manag th ir inv tm nt portfolio ba d on th ir p r onal goal and financial ituation , imilar to financial advi or . Th digital platform provid professional financial management and advic to u r for low r f compar d to financial advi or , and typically hav no minimum balanc .

Th ctor' ri in popularity i th r ult of gro ing trust toward algorithm and data coll ction, along with it low ntry f . Thi alt rnativ provid conv ni nc for u r by automating and utili ing passi e indexing strategies ba d on mod rn portfolio th ory which r f r to maximi ing xp ct d r turn giv n a c rtain l v l of ri k. Th int gration of robo advi or i n acro many brok rag and inv ting platform , with om taking a hybrid approach to utili human conn ction and digital advic .

Contrary to thi , robo advi or hav re ealed to b

Conv ni nt and co t ctiv Effici nt in tim con uming ta k

U mor div r ification in portfolio Low r f than traditional financial advi or

Whil t thi n w form of financial t chnology m advantag ou , th r ar do nsides to it automation

Lo of autonomy ov r inv tm nt Focu d on matching mark t tr nd rath r than b ating th mark

Limit d abiliti in managing compl x a t lik tat plannin

Lack of human int raction and conn ction

Spotlight

Vanguard along with other financial advisory platforms have adopted robo advisors to attract young techy investors. This infrastructure will serve to be highly beneficial as financial advisors would also be able to efficiently calculate risks using the automated infrastructure.

The rise of account holders are a result of an increase in younger generations accumulating more income thus seeking robo advisors. Whilst the slowing down in change can be attributed to the slowing down of accounts opened due older generations preferring traditional methods of communication.

Software developers code to des gn, bu ld and ma nta n the software nfrastructure for users to access robo adv sors Th s role s fundamental n development of the robo adv sory and work on the back end

Data sc ent sts analyse data and use mach ne learn ng to bu ld personal sed data products to create nformat on to make better dec s ons for products and customers Th s s then rev ewed to find d spar t es, ma nta n ng data and v able nvestment opt ons Serv ce spec al sts: Spec al sts prov de feedback and ass stance for nd v duals nav gat ng the robo adv sors They prov de support through chat funct ons and red rect users to resources to enhance user exper ence