Robo advice – that Mack truck is still coming!
When the term “robo advice” first entered the financial planning industry’s lexicon, it sent shock waves through its ranks. Could automation spell the death of the financial planner? Could this low-cost, efficient, alternative to the traditional approach to financial planning be the wave of the future?
Well, after the industry “took a Bex and had a good lie down”, it was generally decided the financial planning industry did have a future.
Sure, automated financial advice would cause disruption; but the need for specialist advice around issues such as estate planning, investment strategy, and self-managed super fund compliance to name but a few, would ensure the industry’s survival and growth.
- sponsor - Wealth Know How
Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
Published on 07 Jun 17
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When the term “robo advice” first entered the financial planning industry’s lexicon, it sent shock waves through its ranks. Could automation spell the death of the financial planner? Could this low-cost, efficient, alternative to the traditional approach to financial planning be the wave of the future?
Well, after the industry “took a Bex and had a good lie down”, it was generally decided the financial planning industry did have a future.
Sure, automated financial advice would cause disruption; but the need for specialist advice around issues such as estate planning, investment strategy, and self-managed super fund compliance to name but a few, would ensure the industry’s survival and growth.Sponsor - Wealth Know How
Wealth Know How is the online network helping people manage their wealth through financial education. Whether you are looking for simple ways to better manage your cash, or you are after a complete strategy on how to save for retirement, we can help you understand your options. It is important to have a vision for your future, but its knowledge not dreams that will ultimately deliver financial success.
-
Venezuela tension heats up
Duration 03:16
-
Aussie dollar surprises market
Duration 03:10
-
Markets climb as investors watch US healthcare bill
Duration 02:31
Well, after the industry “took a Bex and had a good lie down”, it was generally decided the financial planning industry did have a future.
Sure, automated financial advice would cause disruption; but the need for specialist advice around issues such as estate planning, investment strategy, and self-managed super fund compliance to name but a few, would ensure the industry’s survival and growth.
Financial advice, however, using artificial intelligence is making enormous strides in what it can offer - and when and where it can be offered. Think of your mobile phone and its apps of just 10 years ago and how that piece of technology has evolved.
Robo-advise, that we currently think of as just portfolio construction and management is only a small part of the financial advice that can be offered online.
Today much AI financial advice can be done better, quicker and more efficiently than the traditional financial planner, and provided when the consumer needs it most on their mobile phone.
So, what happens when a potentially lower cost, more transparent and efficient system, becomes more sophisticated in the advice it can offer. And improve it will. To think otherwise is foolish, because if there is one thing we do know is that improving technology is a treadmill we can’t get off.
Once the premise about constantly improving financial advice, provided by artificial intelligence is widely accepted, life will be that much harder for the planner. The commercial reality is that more consumers, no matter what stage of their life cycle, will be attracted to this form of financial advice. The cost, the quality, the delivery via mobile phone will prove highly persuasive.
This is not an issue just being face by financial planners, but also lawyers, doctors and many other professions.
Just as niche travel agents have survived – indeed, some have thrived – in the internet era, so too will the financial planner who knows how to add that personal touch and add value to their clients.