Abstract
Robo-advisors can replace financial advisors and asset managers at low costs. However, human managers and advisors will survive. This is predominantly because although robo-advisors primarily appeal to a clientele of already financially sophisticated investors, they lack some of the qualities people look for in a “money doctor”, and their business models have not yet stood the test of time. While a general algorithm aversion is absent in the financial domain, even tech-savvy millennials do not particularly favor robo-advisors. As new survey data shows, investors view algorithms as an aid to human managers rather than competitors. A hybrid model with humans and robos working together, as already implemented by some financial institutions, might be the future of delegated investment.
| Original language | English |
|---|---|
| Journal | Journal of Financial Transformation |
| Volume | 51 |
| Pages (from-to) | 20-27 |
| Number of pages | 8 |
| ISSN | 1755-3628 |
| Publication status | Published - 2020 |
Keywords
- Algorithm aversion
- Asset management
- Delegated investment
- Financial Advice