It is apparent that Robo advice has had a huge impact on the wealth management industry. Various wealth managers have already begun a robo advice alternative; others are or have an option in development reviewing strategic options. (Image source: Selfwealth)
Measures that Wealth Managers should take
Wealth management businesses assessing their choices associated with Robo advisors India must assess five essential factors:
- Alternatives shall be developed in house, through a venture, or through the acquisition of a present supplier.
- How the product shall cater an intuitive and satisfactory customer expertise. It is generally reached through an iterative process involving prototypes, client laboratories and even high-speed revisions and developments.
- The robo advice shall be placed—as a standalone catering, within a full service financial advisory program a hybrid tool of both.
- If the company has the analytics customers and to attain the tips and insights to work in an efficient manner with them.
- Internal and external advertising management strategies undertaken
Advantages for financial institutions
There are many and a few are like:
Financial institutions experience fewer costs to deliver financial advice
It could be cheaper for financial institutions to cater advice through automated tools, as an example because automated advice does not need the service of human advisers, or because lesser costs are incurred from possible human errors. Although a time of initial investment is needed, once the price of system development has been met, the marginal cost of every new transaction could be relatively low, allowing the financial institutions to benefit from economies of scale.
Advantage relating to the size of the possible client base
Financial institutions have access to a huge range of consumers in case they cater advice through automated tools. Certainly by catering advice through automated tools financial institutions could attain access to a huger range of consumers, not just due to the relative ease of fascinating a potential clients from across the EU through an online presence, but also because they can fascinate new categories of consumers that prefer to make use of online channels as opposed to face-to-face or telephone canals. Financial institutions can thus advantage from automated tools to enhance their distribution platform to deliver proper device.
Quality related benefits
Financial institutions make use of automated tools to cater a consistent consumer experience. Yes, automated tools could be seen by financial institutions as a way to cater a more standardised consumer experience by eradicating the potential for differences because of human interpretation. And It is needless to say that an automated tool could also enhance the quality of the service catered to consumers by offering a direct association with current market or other relevant data. Automated tools can more quickly process large quantities of evolving data and so update the advice output on a real-time and continuing basis, if required.
Thus, if you are in wealth industry and you haven’t considered the concept of robo advice then you should do it now.