We know robo-advisors who have set up shop in the wealth management industry aren’t going anywhere anytime soon. We’ve seen them grow in numbers, their assets reach formidable levels, and their client base become substantial.
But while we know these robo-advisors and other varieties of automated financial advice have made an indelible mark on our industry, we also know they’ve shown signs of recognizing the limitations of their role. Some robo-advisors have hired “human advisors” as part of a movement toward a hybrid model that acknowledges the need for digital platforms to retain at least some “traditional” services.
We know, as part of the traditional wealth management industry, that there is a complexity of client service that can never be replaced by technology. Few moments in wealth management history have demonstrated this more profoundly than the events of this past year, when investors tried to preserve and grow assets in the wake of a highly emotional presidential election, as equities reached all-time highs and the Federal Reserve advanced on its tightening cycle.