Robo advisors look beyond wealth creation to automated personal financial advice - Muckle


'The emergence of'celebrity' robo advisors such as Gemma Godfrey does much to shake off the fusty City connotations of investments' Muckler says that if it encourages an environment of financial self-reliance and establishes long term savings and investing habits, then that works just fine; indeed reaching beyond the pool of the'initiated' has long been the holy grail of the financial services world. In addition to building an investment strategy based upon investment and risk preferences, the next generation of automated financial advisor would need to fully understand customers' goals and how they prioritise some over others; an emotional dislike of being in debt may see the client seek to pay off cheaper debt and eschew potentially higher yielding investment opportunities, just to get it off their back. Technological advances will be needed to provide such complex and personalised advice but the level of investment being made in artificial intelligence and machine learning by a wide range of financial services providers, suggests that it is only a matter of time before an automated advisor will be able to provide insights around achieving personal, career and financial goals. A PFM could achieve far greater customer engagement and potentially replace traditional financial institutions as the source for financial advice and education.