As technology tightens its grip on the financial sector, more financial advisory firms are taking an "if you can't beat 'em, join 'em" mindset on robotics and are blending fin-tech portfolio models into their practices.
They almost have to, as clients are demanding more technology from their advisors and that's just what robotics delivers - computer-generated advice and services that are independent of a human advisor.
According to a January, 2017 study by New York City-based Accenture, seven in ten consumers around the world would welcome robe-advisory services -- specifically for their banking, insurance and retirement planning needs. Additionally, 80% welcome robo-advice for investments only -- a number that should grab the attention of any money manager.
The good news for financial advisors? Clients want face-to-face human interaction, as well.
"We found strong consumer demand exists today for robo-advice in all areas of financial services - banking, insurance and financial advice," says Piercarlo Gera, senior managing director at Accenture Financial Services.
While financial institutions may expect to benefit from internal cost reduction by providing customers with a robo option, Accenture's research found that consumers also expect first-class human interaction, too.
"Successful financial services firms will therefore need a "phygital" strategy that seamlessly integrates technology, branch networks and staff to provide a service that combines physical and digital capabilities and gives consumers a choice," Gera says.
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As more investment advisory firms take steps to merge robo-advice into their businesses, what, exactly, should they be looking for in a good robotics portfolio management package?