For Your Money, Which is Better: The Algorithm or the Adviser?
We've seen a massive movement toward convenience and automation in nearly every industry. As consumers move toward the option of ordering products online from sites like Amazon, the retail world has seen a record-breaking number of brick-and-mortar store closures. Fortune even predicts that nearly half of retail jobs will be lost to automation, as self-checkout features and other human-less technology advances.
This movement has spread to the financial advisory industry, with the emergence of new technology affecting the way advisers give financial advice.
The reality is, the rapid growth and early-stage adoption of financial technology (FinTech) indicates an industry disruption is underway. Algorithm-based, digital advisory technology has brought us the increasingly popular "robo-advisers," which replace human advisers with software. Research firm they had about $60 billion in assets under management (AUM) at the end of 2016, and could amass an estimated $385 billion by 2021.
