Smart Money Capital Management
“We are seeing an emerging trend of a hybrid model: one in which traditional advisors are working with online investment advisors – aka robo-advisors – to better serve their clients’ needs. Leaving the portfolio management and associated operational responsibilities to a robo-advisor frees up more of their time to focus on providing the human interaction clients seek.
The industry is changing. Advisors and firms have started to accept that embracing robo-advice as a tool can and will greatly increase their business. For our part, we have positioned ourselves to be a tool for advisors rather than a threat.”
“Currently, Canadian robo-advisors are no threat to advisors. It’s a great concept for investors who want a low-cost, low-touch investment solution, but it’s not going to replace human advisors. While the robo-advisor trend will morph in the future, it’s still basically a commodity.
Robo-advisors are striving to earn brand recognition and hopefully profits someday. Ultimately, the value they deliver has to be based upon more than being cheap. A novel approach only goes so far – getting people to flock to the flavour of the month requires offering clients a quality, engaging and rewarding service, not just a slick interface.”
President and CEO
Financial Planning Standards Council
“The answer to this question is: it depends. The thousands of financial advisors who have based their value proposition primarily on investment product selection may want to rethink their value or find another business.
However, there’s great opportunity for those who are willing or able to embrace technology to supplant the client experience.
Those advisors who will prosper are the ones who embrace technology to add value to their offering and to focus either on deep specialization or a more comprehensive approach to their clients through financial planning.”