Department of Economics and Business Economics

Robo-advice and the future of delegated investment

Research output: Contribution to journal/Conference contribution in journal/Contribution to newspaperJournal articleCommunication

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 languageEnglish
JournalJournal of Financial Transformation
Volume51
Pages (from-to)20-27
Number of pages8
ISSN1755-3628
Publication statusPublished - 2020

    Research areas

  • Algorithm aversion, Asset management, Delegated investment, Financial Advice

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