Since ages, Robots are feared to be taking over our world. Well, to an extent it has become a reality. At least the investment world is facing this situation to a large extent. However, this is not the complete truth. Indeed, Robo-analysts can improvise the quality of investment advice by allowing analysts to concentrate on the value-added components of their work. Let us try to understand the phenomenon in greater depth.
Robo Analysts: The Future
Robo-Advisors also known as ‘Robo-Analysts’ are quite significant in helping wealth management firms to control their costs. Here, the main benefit is that they do not have to compromise on the quality of the advice. However, the importance of a Robo-Analyst to improvise the quality of investment advice should not be underestimated. The dynamic markets will keep changing the norms of financial analysis.
In current times, several tasks being executed by Robo-Analysts are quite low in terms of value addition. These are quite basic in nature where generic asset allocation strategies are being advised. It is challenging for the advisors to make money with the help of strategies suggested by Robo-Analysts. To achieve higher revenues higher value-added services needs to be clubbed along. The value proposition of a Robo-Analyst is quite different. The reason for the difference is Robo-Analyst technology enables wealth advisors to give longer in the term, value-driven devices. This advice doesn’t just meet the fiduciary duty of care, but also offer peace of mind to advisor & customer.
Especially, Robo-Analyst can help in covering several untouched & ignored aspects related to financial planning. These are the aspects, which are overlooked by most research analysts in today’s time. Now, investors do not have to rely upon the financial headlines, which are manipulated by the respective management of the companies.
With the entry of newer technologies, investors can gain valuable, holistic & comprehensive analysis of their financial needs. These researches are empowered with better insight regarding financial filings, company profits & asset valuation. As an outcome, Robo-Analyst technology fairly raises the analytical benchmark globally. This helps investors to think beyond short-term matters & priorities long-term goals.
Benefits of Robo-Analysts
Robo-analysts offer a huge gamut of benefits to the wealth management sector; some of them are:
- Easier on-boarding procedure
- Superior capability with automated processes
- Lower costs
- Higher precision in analysis
- Target audience such as millennial & low-income groups can be covered
Big Data & Artificial Intelligence surely helps investors to identify meaningful connections across large volumes of complicated data sources. The model of Robo-Analyst offers great benefits. It presents the unbiased approach & immense scale.
Human analysts may carry great skills to analyze data on a smaller scale; however, machines can methodically as well as objectively inspect thousands of them simultaneously. Hence, there is a huge opportunity to make use of the data-driven Robo-analysts as a complementary force.
The combination of human as well as Robo-Analysts can offer great insight & ground for better decision-making.