pro finance blog
Menu
  • About Me
  • Hire Me
  • Contact Me
  • Submit a Guest Post
    • Privacy Policy
    • Disclaimer
Menu
What is Robo-advisor_

What is Robo-advisor?

Posted on December 23, 2020July 24, 2022 by Tina Roth

Technology is the lifeblood of today’s organizations and this is even more true of the wealth management field. With the increased competition, those organizations having a vibrant technological system will be able to beat the competition. Since wealth managers manage many accounts of clients and involve managing huge sums of money, a capable Robo-advisor makes a big difference in seamless management of portfolios.

Robo-advisors are digital financial planning tools that are based on algorithms, with little to no human interaction. The investment decision-making process of Robo-advisors is purely based on the information gathered from clients, making error-free and unbiased investment decisions.

What is Robo-advisor_

Robo-advisors offer wealth and portfolio management features of a financial advisors’ business, giving more autonomy and control to clients to gather information about their account. The lower dependency of the client on a financial advisor for account-related inquiries allows financial advisors to concentrate on critical tasks of portfolio management and other important activities.

Advantages of a Robo-Advisor:

One of the main advantages of using a Robo-advisor is its cost-effectiveness. The wealth management firm having a Robo-advisor platform has to just pay a monthly or yearly subscription fee and does not have to pay a recurring fee for managing the portfolio of each client. In some cases Robo-advisors are already included in the cost of a platform so there is no additional fee for the module. RIA time is valuable and is better spent building relationships and making wise portfolio investments. An investment in a Robo-advisor makes sense and feasible.

Unlike humans, the Robo-advisor is always available at your clients service, making it an ideal choice for fulfilling the clients’ and wealth management firms’ needs 24/7. Robo-advisors can assist in managing a range of portfolios consisting of different assets. Robo-advisors can help develop diversified portfolios, consist with the goals and risk level of a client, which can reduce the volatility and risk of the overall portfolio.

Ways to use modern technology:

The use of modern technology like Robo-advisors and portfolio management platforms can benefit the firm in the following ways:

1- With Robo-advisors and digital platforms like Advisor Engine, wealth management firms can make quick, paperless, online account opening and boost productivity by making improvements in various processes.

2- It is advisable that wealth management firms invest in a Client Relationship Management (CRM) platform which will help them improve workflow, increase productivity, and create performance reports. In today’s competitive markets, investing in CRM for Financial Advisors like Junxure — a powerful client relationship management platform — can help you fulfill all your client relationship needs, resulting in client satisfaction and retention.

3- Robo-advisor and wealth management platforms can help your firm in maintaining regulatory and risk management standards while managing portfolios.

4- The online secure vault provides access to important documents of your clients with just a click of a button. Documents can be shared with your clients as well with just a few clicks without finding email addresses and sending manual emails, allowing seamless communication with clients.

Conclusion

Automated financial planning is the future of financial advice as it blends cutting edge technology with human intelligence, which can create synergy and maximize value for both the firm as well as clients. Robo-advisors have a place in the toolkit of every RIA, and now is the best time to deploy them in your firm to get the advantages.

Category: Personal Finance

Leave a Reply Cancel reply

You must be logged in to post a comment.

About Me

finance blogger

The idea of starting a blog has been hitting me for long; I took it seriously after falling into a spiral of debt and recovering from it.

I have been anxious all through the financial difficulties. I see that same anxiety in the eyes of people, whose ill fate has put them at odd with financial repose.

It makes me compassionate. Out of this compassion and goodwill, I started this blog. I wanted to help all those, who are facing financial distress..




  • Phuket Real Estate
    Why You Should Invest in Phuket Real EstateJanuary 24, 2023
  • Corporate Governance
    Corporate Governance: What Are the 3 Core Principles of Good Corporate Governance?December 17, 2022
  • Successful Retirement
    How To Plan For Successful Retirement At 50: 5 Steps To Get Started OnNovember 4, 2022
  • Online Money Transfer
    Do You Still Transfer Money Internationally With Your Bank? There Are Better Online Solutions For ThatOctober 14, 2022
  • finance
    Important Roles of the Minister of FinanceSeptember 16, 2022
  • Avoid for New Businesses
    5 Forecasting Faux Pas to Avoid for New BusinessesSeptember 16, 2022
  • Affecting Pensions
    How Inflation Is Affecting PensionsSeptember 2, 2022
  • Content Writing
    The Complete Guide to Improving Your Content Writing SkillsAugust 30, 2022

    ProFinance Blog is dedicated to help people who are struggling with their personal finances. We have learned the lessons first hand and know how real the struggle is. Being compassionate about the personal finances and blogging about is our way to help people know more about different situations and how effectively they can handle it. So take control of your finances now and take actions towards gaining financial freedom and security. Join us in the mission to self-educate, learn and help others by sharing valuable information on finances. Here you will find information, tools and techniques on various aspects of finances and learn how you can use the information and implement it to make your financial life better than ever.Join us in our mission to financial freedom.

    • Phuket Real Estate
      Why You Should Invest in Phuket Real Estate
    • Corporate Governance
      Corporate Governance: What Are the 3 Core Principles of Good Corporate Governance?
    • Successful Retirement
      How To Plan For Successful Retirement At 50: 5 Steps To Get Started On
    © 2023 ProFinance Blog | Powered by Minimalist Blog WordPress Theme