So much for the long-predicted humbling of robo-advisers in a bear market.

The Globe & Mail

The bear has arrived and investors with robo-advisors are staying put, thank you very much. 

For anyone working in financial advisory, the companies like Wealth Simple, Betterment and Mylo, are not news. For many years, if you wanted to invest your money, you either had to manage your portfolio yourself, or you had to have enough money that you could hire a financial advisor to manage a portfolio for you, a costly endeavour.

The growth of robo-advisors has changed this. The wide availability of low-cost ETF’s makes it possible to easily construct portfolios that are both diversified and personalized. The universal penetration of the web makes it possible to engage with customers through systems instead of face to face conversations.

A.I. and machine learning come into play here in a couple of ways:

  • Chat-bots and machine learning are making it possible to provide customized financial advice and to answer complex and contextualized questions without needing a human advisor to be in the interaction.
  • Deep learning automates the process of portfolio selection – intake questionnaires can be correlated with hand-chosen portfolios and then used to drive powerful, convenient user-interfaces which give customized portfolio recommendations to users.
  • Recommendation algorithms guide investors to long-term success with relevant, highly-personalized content, building trust and brand loyalty. 

The growth of technology in the advisory space will undoubtedly continue. Investors are proving it. We can help.

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