Immediate answers in a conversational format
What is robo advice?
Robo advice offers a low-cost alternative to financial advisors. They provide investors with advice about asset allocation, portfolio construction and tax reporting.
Users complete an online questionnaire about their investment time frames and ability to handle investment risk and algorithms construct asset allocations based on their answers.
The cost of this service is very much cheaper than the cost of using a financial adviser and there is no delay. These features are proving attractive to investors, especially millennials.
The future of financial advice
As with the Finchat Alexa skill (above), Robo advice is likely to broaden its reach into other areas of Financial Planning and may end up completing the whole process including product recommendation and disclosures.