Are Robo Advisors opening the Way to New Customer Segments?

Jeremy Boot, Senior Product Manager, explains to Business Reporter how robo advisors can present an unprecedented opportunity for wealth managers.

Extract from ‘Digital Banking: the opportunity for wealth managers’. As featured in Business reporter and The Telegraph Online.


Robo advisors are certainly grabbing their headlines at the moment, but is that something that should be cause for concern for wealth managers?

Well, we think wealth managers need to look at this as an opportunity. The Robo advisor market is still a young market.

It will evolve, and public awareness about Robo advisors is still growing, so it’s important to recognize as well that Robo advisors it goes beyond simply the new FinTech solutions really targeted for retail customers. It’s really about streamlining investment management, so combining automation with straight-through processing.

So, yes there are the new solutions that have grabbed the headlines, but as we move up the client tiers we find these being combined with access to an RM into hybrid solutions, as well as being deployed internally for RM’s to facilitate the generation of investment advice.

Wealth managers need to look at this as an opportunity, also perhaps to target new segments and we see some financial institutions traditionally focused on the top end of the market rolling out solutions towards the lower end as well.

Robo advisor type solutions should really be a cornerstone of any wealth manager’s digitization strategy.

It’s about leveraging the automation and the technology that is key, and then having that solution in place that base in place which can then be extended with more capabilities as these become available.

So, using customer data, adding analytics and artificial intelligence to further enhance and support the investment management process.