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.)