Robotics has long been touted as the next big wave that will boost efficiency, increase customer satisfaction and, most importantly, slash costs and maximize profits. Robo-advisors are now entrenched in the investment industry, but most of these firms are not experiencing all of the benefits of automation; in fact, many of them are losing money. What are the main factors cheating robo-advisors of profitability?
What a huge advance it is that the financial sector now has robots to relieve the ever-growing pressure of regulation. Almost everyone handling or processing personal data now faces vastly increased compliance requirements once the European Union’s General Data Protection Regulation
Private bankers and wealth managers have been competing amongst themselves for years, attempting to outdo one another in terms of offering the best service for the lowest fee; but today relatively low-cost disruptors, robo-advisors, are snatching away too much of that business. The remedy is a three-point strategy that proves that the value of the service offered by traditional providers justifies the higher fee.