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Can robo-advisory become the dominant design in financial advice?

In 2010 many new robo-advice tools started emerging in the financial services industry worldwide. This article outlines some of the pioneers, growing pains and emerging leaders, while this article explains how Kiwis are becoming more accepting of 'digital humans' and some of the services they offer.

This is a really important quote from the first piece, highlighting a nuance in digital-human hybrid service provision: 

"...moving to ‘hybrid’ models,digital-first services that offer human advice when required. This, for us, is the key. It gives these firms the ability to serve their customers at a level they want and at a price point they are happy with. At times this price point will include a human interaction, others will simply demand a transactional-focused digital-only product."

Instead of asking 'can robo advisory become dominant?' perhaps we should be asking 'can primarily non digital services survive?' the question then becomes the extent to which digital services are present in your offer. If you are waiting for someone else to develop digital services for you, then you are going to be placed in the situation of merely accepting the role (and margin) that they envisage for you in the value chain. 

 

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