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
Pages (from-to)20-27
Number of pages8
Publication statusPublished - 2020

    Research areas

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

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