Wealth Management Through Robo Advisory

Abstract

Use of artificial intelligence is changing the working styles of human beings in almost every sphere. From Travel, health, education, communication and other related fields, it has now entered wealth management. A number of wealth management firms have adopted the artificial intelligence based services to the clients so that they are able to get investment advice any time as per their convenience. These services are quickly accessible, cheaper, transparent and unbiased. Since the advisory services are being provided by the machines just like robots, they have been called “robo – advisors”. This study is focussed on evolution of robo advisory model, its needs and potential in wealth management. The information gathered for this paper is based on the secondary data collected from various newspapers, magazines, journals and reports. At present the use of robo – advisors is quite small but it does have a bright future. Though a bit expensive at the initial stage, they prove to be cost effective later as they save the cost of human advisors. It also offers good decision making since it is based on systematic and quantitative research. This paper tries to highlight the potential of robo advisors in wealth management and also discusses its present status and future prospects