They provide digital financial advice based on mathematical rules or algorithms These algorithms are executed by software and thus financial advice do not require a human advisor The software utilizes its algorithms to automatically allocate manage and optimize clients assets ID: 812631
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Slide1
What
a class of financial adviser that provide financial advice or portfolio management online with moderate to minimal human intervention.They provide digital financial advice based on mathematical rules or algorithms. These algorithms are executed by software and thus financial advice do not require a human advisor. The software utilizes its algorithms to automatically allocate, manage and optimize clients' assets.
Why
For Fund Managers:it reduces overhead costs, in particular cost of human resources and securities researchIt might put the company in a better position in the industry as the company can offer a lower fees to customersFor Customers: Lower fees to payLower size of investment They can monitor their investment 24/7
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Where and Who
Mostly in the countries where:The information of the market is available efficientlyMarket cap is very largeAmong others: USA: Vanguard, Charles Schwab, Betterment, Wealthfront, Personal CapitalUK: NutmegCanada: Wealthsimple
Taken from en.wikipedia.org
Robo
Advisor
Slide22Robo
AdvisorPros
Low FeesEasy to transactCan be monitored 24/7
Easy access for lower networthLow minimum balanceCons
It is not personalized
No face to face meetingCan only be implemented in an efficient market
Slide33Robo
Advisor – How It Works
Customer fills KYC, Customers Profile, Financial Goals, Monthly Income and Expenses, tenor of investment in Robo provider website
The provider analyse (automatically) the customers profile and investment goals, and propose asset allocation to customerUpon customer’s confirmation re the asset allocation, the Robo provider asks the customer to open a dedicated bank account and investment accountStart investing
Slide44Robo
Advisor in Indonesia?