Robo Advisor or Bionic Advisor?
The time has arrived when the financial services industry is having to make historically significant decisions concerning the “T” word: technology. The technology of the day is now Robo Advisor. Firms, broker-dealers, RIAs, and financial advisors are all arriving at a moment of making a “binary” decision of Yes or No, In or Out. Customers are signing up at the speed of the Internet to align themselves with robo advice, especially the millennial generation.
Some of the most respected advisors are evolving in the direction of the “Bionic Advisor,” part personal and part robo, in meeting the needs of their clients. Stay tuned, because the final answer will not come until robo advising has had more of a stress test through economic cycles. I still prefer working with a person rather than an algorithm, but the potential remains to work with both.