Personalized Wealth Management as the Next Wave of Robo-Advisory

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By FINTECH Books Contributor, Marc Torrens
Follow: @marctorrens 

Traditional investment firms based on human advisory are threaten by new Fintech players implementing robo-advisor platforms that are able to offer more efficient investment with a fraction of the fees involved in human investment.

These robo-advisor platforms are providing investment strategies based on data, technology and automation. However, incumbent investment financial institutions and banks are rapidly incorporating such technologies, often offering the advantage of robo-advisors in combination with some degree of human advisory.

The race has begun, but probably the automation of investment strategies will not be enough to compete in this rapidly innovating sector.

Most of the robo-advisor platforms are focusing on offering the best return on investment possible for their customers. Obviously, this is a very important aspect of investing but we believe wealth management in a broader sense includes other aspects that are as relevant as the pure investment returns.

Actually, wealth management practices have been accessible only to high net worth or affluent individuals. However, nowadays technology can bridge the gap between middle-class and wealth management.

Thus, aside from focusing on investment returns, wealth management should include wealth analysis, goals setup process, and tracking tools. Every individual should care about fundamental financial aspects such as emergency buffer, retirement goal, and life insurance.

In addition, individuals have specific custom objectives that should also be    considered. All these fundamental financial aspects should be planned and tracked by any individual independently of their net worth and what is more important, investment strategy should evolve as a customers’ life does.

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