Salient to Investors:

  • Computers are learning to pick investments, rebalance portfolios, adjust risk levels and minimize taxes more quickly, more reliably, at a quarter of the cost and with flashier graphics than financial advisors.
  • Many new “robo-advisers” are relying on flesh-and-blood advisers becuase they find that a human with a sophisticated computer system can be better at winning trust than an algorithm alone.
  • William Trout at Celent said robo-adviser brands are burning through millions of dollars in cash, but digital tools are getting more sophisticated and clients are realizing they do not need wood paneled offices to impress them.

Read the full article at http://www.bloomberg.com/news/2014-10-15/how-technology-is-killing-off-lame-financial-advice.html

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