Robotic Refactoring the Workplace
The "Cambrian" Robotic Explosion has Begun
Position Sensors for Robotics
Robot-Proof: Higher Education in the Age of Artificial Intelligence
From Robotics to Big Data, What the Future Holds for Manufacturing
Karl Rosenblum, Head of Global Capacity and Risk Strategy, Alcon
Deep Learning and Future of Healthcare
Sanjib Basak, Former Director of Data Science & Artificial Intelligence, Carlson Wagonlit Travel
Robots: A New Source of Business Data
John Santagate, Research Director, Service Robotics, IDC
Machine Learning and Artificial Intelligence: Revolutionizing the...
Kali Durgampudi, VP of Innovation, Mobile Architecture, R&D, Healthcare Solutions, Nuance Communications
Advent of Robo-advisors in Financial Advisory Services
Several businesses in diverse industries have started to leverage robots for various processes, and the latest disruption is in the field of the financial sector. IBM Watson is a smart computing system that provides recommendations to doctors in treating cancer. This is a simulation of human thoughts that is processed in the computerized model which consists self-learning systems, which make use of data mining, pattern recognition, and natural language processing unit to mimic the way the human brain works. Online trading sites like Scottrade, TD Ameritrade, Charles Schwab, and Vanguard are now providing advice, resources, and the means for opening retirement accounts within minutes giving individual investors control of investment decisions. Now, a more technologically advanced investment decision maker, the Robo Advisor, looks at all possible risk-reward outcomes to create a custom-designed portfolio, is gaining popularity.
Robo-advisors are digital platforms that provide automated, algorithm-driven financial advising services without human intervention, which is consumer oriented. This is a particularly wise solution for new investors with a small nest egg saved for retirement. Robo advisors offer a convenience that isn’t available from human advisors.
Though the Robo-advisors are becoming more popular and a valuable tool in the financial sector as advisory, there exist concerns. Some Robo-advisors remain fully automated; there are others that offer the option to speak with an investment professional for advice via phone or online chat. Some are customized for young, inexperienced investors while others are geared toward experienced ones with larger wealth bases. Vanguard Personal Advisory Services and LearnVest are two of the human-assisted Robo-advisors available today.
Many banking and financial institutions are using few automation to save customers time and money. For example, Standard Bank utilized WorkFusion’s SPA software to automate their customer onboarding process. With bots integrated into so many processes already, it’s only logical that a customer will start to trust them with everything, including managing their money.
Although this particular generation is attracted to the non-human financial advisor model, investors at all stages of life appreciate when a financial professional takes time to understand the financial goals, which automated algorithmic-based investment advice cannot do. But technology is not for every situation. Investors might benefit more from the advice of a human financial adviser, but for the majority of investors, Robo-advising offers more advantages that can provide high returns.