There is much discussion in the financial planning world about the disruptive impact of technological advances on the industry, particularly the possibility of the “robo-advisor” supplanting the human advisor.
Robo-advisor is the term the financial media use to describe an array of digitally delivered services that leverage technology to automate the bulk of financial advisory service for individual investors. These services purport to provide a low-cost, technology-dependent approach to personal financial life, with the early adopters primarily being millennials.
With various permutations of the robo-advisor idea coming from venture capital–backed independent firms, and now from some larger, traditional custodians, traditional advisors and CPAs providing wealth management services are left wondering how this will impact their livelihoods. Many millennials and some Generation X investors view the traditional advisor as a “middleman” that can be cut out of the transaction.
Read more: Humans versus Robots – The CPA Journal