A conventional financial advisor is one who conducts a lot of investment advisory audits which means that most of their time is spent on assessing the portfolio managers and reviewing the industry and trying to help people as per their needs.
However, in the recent years, it can be seen a change in the trend where a new type of advisor has entered the market which are known as “robo advisors” also known as an automated investment service. This type of service is used to mechanize a client’s investment portfolio which as a result allow in reduction in charges, streamlines and brings efficiency in processes by making everything systematic.
Let’s find out the benefits that come with using an automated investment service over a traditional advisory service.
The low cost platform that comes with the automated investment service as opposed to the traditional advisory service allows in reducing the fees that clients pay as a whole. This is a positive news for those who feel that that advisory services for investment purpose are overpriced.
- Driving out Sub – Par Advisory
Making everything systematic and comprised mean that processes that used to require a lot of manpower earlier, will not be needing people to control the advisory services. This means that subpar advisors will be driven out as they are most costly due to their services offered.
- Systematic Process
When processes are automated and systematic, they provide efficiency and more accuracy. Portfolio building and maintenance covers having and processing a plan. These mechanized services are efficient ways to be regulated and can easily be maintained. When things are systematic, they also make it easier for the users and decreases time in the overall process of advisory as everything is available under one roof.
- Financial Planning and Portfolio Management
Since there is a new trend of automated investment services, some of them are used in providing products which are closer to portfolio management and financial planning. These systematic tools can also be seen to provide personalized services related to advisory.
As a whole, these benefits outweigh the disadvantages that occur with using automated investment services. One can say after reviewing the benefits that come with automation of financial advisory that they are positive developments for both; consumers as well as the business. In other words, one can say that automated services have changed the overall look of the industry.
For some people, automated investment services are considered to be beneficial while some see it as a threat as this reduces the element of job creation as automation does not require the use of manpower much when compared to the traditional advisory process.