financial disruptor
Weekly Briefing No. 53 Financial Disruptors Have Already Won the Election
In explaining his rationale for deposing CEO Adam Nash and reinserting himself in the top spot, Wealthfront co-founder Andy Rachleff put his faith in artificial intelligence over people: "We understand that many older investors who meet the high minimums of the traditional industry will continue to find more comfort in a personal relationship with a traditional advisor and we respect that." Rachleff went on to explain that his company is building an AI-powered offering for a new generation of investors who supposedly won't ever need a human touch. We respect Rachleff and Wealthfront, but disagree fully with this view. We could cite growing competition from deep-pocketed incumbents, but that's not our main objection. Our view is that bionic advice -- where human skill is augmented with technology -- is the future of the advisory business.