Data from The New York Times suggests that roboadvisors, lacking the human touch, just might need to get some actual skin into the money management game.
The problem?Americans have become so risk-averse about discussing their investing needs with anybody, automated robo plans are left out in the cold as the fintech model seems to be failing to engage skittish American investors. That scenario suggests an opening for traditional advisors, who know firsthand where that client on-ramp is located.
Increasingly, robotics-based money management firms are edging toward more customer access to human-based advisors. Betterment, for example, is broadening its human advisory platform, opening it up to more investors. Other high-profile robo advisory platforms, like Wealthfront, is sticking to the script and keeping its menu of money services digital-only.
That strategy may not be sustainable as investors are increasingly making it clear they want a healthy dose of human-based advisory help – even on digital-based platforms.
Read the full article at AdvisorNews.