5 Reasons Robo Technology Needs to be in Your 2018 Strategy

Can you feel it? It’s that time of year again – where our newsletters and social feeds are filled with annual recaps, reminiscing of the year’s progress, and hopeful predictions for what’s to come in 2018.

With hopes of striking a balance between learning from the past and looking toward the future, we’ve sorted the 5 top reasons we think robo technology needs to be in your 2018 business strategy – backed by trends that have been unfolding over the last few years.

Top 5 Reasons to Add Robo Technology in 2018:

1) Investors Expect It.

The simplest reason robo technology should be in your service model is that investors expect a digital investment experience. Forty-eight percent of HNW investors aged 40-and-over expect most or all of their wealth management experience to be digital in the next 5 years (from a study in 2015, meaning two years have already past)1.

Add that to 87% of under-40 HNW investors1, and you can clearly see that digital-first investment options are becoming a key ingredient to every competitive advisor’s service model.

How Robo Helps

Robo technology helps you place the digital investment experience at the forefront of your value proposition. Can you make components of your investment experience digital without robo? Sure, but it’s difficult to deliver a true digital experience without a platform designed to do just that.

How Clients Benefit

Your clients will benefit from services that align more closely to their expectations. Providing seamless, digital-first service options helps you resonate with the modern investor.

2) You’re Not the Only One Who’s Short on Time

Advisors understand all too well that time is a finite resource. There is only so much time in the day to attract and serve clients. However, it’s important to realize that advisors aren’t the only ones who feel time-starved.

An emerging class of HNW investors have placed time at the top of their wealth management needs. Among under-30 HNW investors, 80% rated effective use of their time through convenient and valuable meetings as a leading priority1. That means limiting unnecessary meetings is essential to resonating with the next class of wealth.

How Robo Helps

Robo technology allows you to streamline administrative processes associated with opening and managing an account – including investor-directed risk assessments, intuitive portfolio construction, and automated back-office functions.

How Clients Benefit

Streamlining trivial investment processes and placing a higher focus on true, value-add services increases your perceived value to the next generation of wealth. By removing common barriers to efficient investing, you not only improve the investment experience, but also gain a clear differentiator – helping people take back their time.

3) Technology Has Given End-Users More Control, and They Like It.

Technology has given the investors more control over their investments and advisor relationships. They seem to enjoy more control over their investment experience, with 66.7% of HNW investors indicating the ability to interact in-person and through digital channels as significant when deciding to decrease or increase assets with any given firm1.

How Robo Helps

Robo technology helps you more easily deliver a customized investment experience (especially hybrid-robo platforms).

How Clients Benfit

Your clients get to build an investment experience that best suits their needs. Robo technology provides an ability to manage what they want, while providing a clear avenue to access your dedicated financial advice, on demand. This level of customization (which doesn’t require a lot of work on your end), helps foster a positive client-advisor relationship.

4) Business Flexibility Depends on It.

There were 325,000 financial advisors in 20082. In 2016, there were just over 270,0003. Stagnant advisor growth paired with a recent surge in wealth from the recent bull market means there is generally more opportunity per advisor. However, time constraints and investment minimums caps your ability to capture that opportunity.

How Robo Helps

Robo technology allows you to cast a wider net. Automation helps free your valuable time, giving you the ability to serve more clients, and develop deeper relationships with current clients. It also allows you to accommodate lower-minimum investors with a low-touch service model.

How Clients Benefit

Finding more time through automation benefits multiple client types. Your current clients can enjoy an increased level of service. Younger, or less wealthy prospective clients gain access to an investment relationship with access to a dedicated advisor – in place of pure robo-advisor platforms.

5) It’s Essential to Accommodating Future Innovation.

Our industry isn’t standing still, and neither is the technology that supports it. Letting your digital capabilities fall behind creates additional headache for you as we continue to move forward.

How Robo Helps

Robo technology gives you a platform that can be built upon, helping you remain competitive as technology continues to evolve.

How Clients Benefit

A commitment to technology helps you provide services that align with the next generation of wealth. Providing services that resonate these digital-native investors creates a sustainable, positive investment experience.

Why does robo technology need to be a part of your 2018 strategy? Because it should have been a part of your 2017 strategy. Robo technology is here, and it’s no longer a technology designed to compete with traditional advisors. When integrated into your core service model, robo technology helps you deliver a positive investment experience to a wider variety of clients.



1Capgemini, United States Wealth Report, 2015

2Cerulli Associates

3Bureau of Labor Statistics, Occupational Outlook Handbook