Toronto advisors facing 'Robo-advisors' challenge

Toronto advisors facing 'Robo-advisors' challenge

Toronto advisors facing

New financial-advice models, like Motion Profiler, are connecting tech-savvy investors with a suite of analytic tools capable of creating financial plans and investment portfolios. These include pure technology-driven websites for do-it-yourself investors (i.e. Motif Investing, Jemstep). They also run to online advisor-investor communication only (i.e. Personal Capital, Learnvest) and financial service companies that have expanded their online services (i.e. Vanguard, Edelman Online).

These growing online offerings have American advisors worried about a significant decrease in retail investor demand for their services, with the potential to hollow out the middle section of the market. .

Still, Canadian advisors believe a robot will never replace the intimate, face-to-face interaction clients get from a trained professional.

“It’s about talking to people about how they feel,” explains Ed Rempel, financial planner with Ed Rempel & Associates/Armstrong & Quaile Associates, Inc. “A big side of the relationship you get from a planner you can’t get from a 'robot.'”

He's not alone, with other professionals sharing the same confidence with WP.

“The majority of my clients, I know them very personally,” adds Rhonda Sherwood, a Vancouver-based financial advisor with ScotiaMcLeod. “So many have gone through really interesting life situations and because I know them personally, I can advise them (on issues) specific to them.” (continued.)

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  • Daniel Hanzelka 2013-10-23 11:13:54 AM
    This new technology is here to give another choice to investors. It is no different to what happened to the real estate business with people having the ability to sell their own property with out a Realtor using an online service to help them to do it. "Robo-advisors" is another avenue to help investors with their finances. I recently spoke with Antonio from For Sale Direct he told me his service will never replace a Realtor it is simply another tool Real-estate buyers or seller can use. In the financial industry things are changing advisors need to adapt to the change. Technology is here to say we need to embrace it and incorporate it into our industry.
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