Wealth Management

The usage of Artificial Intelligence (AI) has been raised throughout the world from smart devices to the well-known Siri application on Mac gadgets; AI is everywhere, even though wealth management and the finance field follow a more conventional path, which does not mean that they are exempted from such trends.

The latest integration for AI is Robo Advisory in Wealth Management

While some may be apprehensive about such science-fiction tactics to the financial system, those robots have the strength that transforms into a wealth management approach.  

Moreover, AI robots are increasingly being used by the millennial generation to maximize their investment returns and tackle diverse financial requirements effectively.

By utilizing this fintech strategy, advisors and wealth managers can look forward to creating accurate financial plans for their clients while delivering stellar service.

Understanding Robo-Advisory strategy

In simple terms, Robo advisors are software products that assist in managing investments without a financial manager’s input. This software works-off of an algorithm that drives financial planning services without much human supervision. All that needs is to access a web or cloud-based device to access this digital wealth management platform.

Since 2008, the rise of Robo advisors taken the world by storm, at first, this fintech development’s primary purpose was to rebalance assets as a way for investors to manage inactive statements. 

During this time, Robo-advisors are only used by wealth managers. This software is now available for clients to mimic the tactical strategies they would see with a human service. Thus, remembering this maintaining a self-automated portfolio that makes easier when facts and figures are produced.

In addition to this notable technological growth since 2008, the total assets under management are predicted to increase too seriously. By 2020, Robo advisors will account for one trillion dollars on asset management. This figure is predicted to increase to 4.6 trillion dollars by the end of 2022.

How do they work?

The Robo advisors will collect clients’ information regarding their financial situation with their goals and investing interests through a real-time survey. 

By this, the software will release an invoice of relevant financial solutions based on the programmed-algorithm.

After the conclusion of the online survey, this software can offer the following features:

  •  Tax-loss harvesting
  •  Goal planning
  • Account services
  • Portfolio management
  • Automatic asset investment
  •  Investor profiling
  •  Digital advice
  •  Retirement plans

Furthermore, once the funds are finished, a client’s portfolio is automatically rebalanced, aligned within the desired target allocations. 

This approach has proven to be a lower-cost approach to investments.

Benefits of Robo Advisors in Wealth Management

Being on the verge of such significant technological alterations, wealth managers would somewhat approach Robo advisors with caution. AI brings such promises for financial advisors that look forward to reaping the existed benefit.

Digitally Transformation with Competitive-edge

The financial system industry is a highly competitive space with more firms that establish, own, and adopts new fintech technologies that are always updated. 

On top of this, one cannot ignore digital advancements that play a significant role in investment management solutions. 

Whether you are targeting young or experienced and savvy investors, providing easily accessible applications is vital.

These days are accessibility and ease of use are crucial in any service offering. With Robo advisors, clients can access their investment portfolio 24/7 and enter and exit positions with the click of a button.

Increases Profile Accuracy & Mitigates Fraud

One of the critical factors that undergo a successful financial organization is correctness and acceptance. 

For machine learning and cloud-based applications, the chances of deviations are reduced.

In terms of machine learning, the client’s data can be easily collected to shape accurate alert detection and reduce fraudulent activity. 

When Robo advisor technology is accessed on a mobile device, data such as location and activity behavior can be continuously acquired. 

When an irregular action is taken on a device, fraud systems can accurately investigate where the transaction went wrong. 

On the human side, the most significant benefit is that it reduces the need for manual input.

Enhanced Financial System Portfolio

By combining both human and robot financial advisors’ best, clients can access proper portfolio management protocols. 

Robo advisors run off algorithms that choose the optimum investment portfolio based on their goals and financial situation. It makes it safer for more strategic portfolio chances.

When it comes to any investment opportunity, face-to-face contact is often preferred. 

However, Artificial Intelligence offers users the groundwork with their facts by considering them as a high priority before making firm decisions. It contributes to success in gaining your client’s belief. Also, improves the accurateness of investing in amounts.

Costs are Low for Robo Advisors

The main advantage of utilizing Robo advisors from the client’s perspective is that it provides a low-cost alternative to traditional investing. Through the elimination of human labor, rates and fees are therefore reduced.


In general, when looking at AI, there was an intense fear of robots that takes worldwide and job execution. 

However, we are more comfortable with Siri, Google Home, and Alexa; AI is becoming a part of our everyday lives. 

For financial managers who want to stay ahead of the game and continue to provide a complete service for their clients, integrate Robo advisors into their strategy is highly recommended.

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