As technological advancements introduced the use of computers in various industries including finance, advisors are prepping themselves up as they incorporate what is known as robo-advisors into their business. This is an online wealth management platform that guides people in handling their assets even without the presence of a human financial planner. Aside from maintaining their original service, they add this update as well to lure more clients and ramp up their career, as this can pave the way for an entirely new source of revenue inflow.

Initial foray of machines

The job of this electronic device is not very different on what actual advisors offer. It also generates and lays out the best choices for a client after obtaining the necessary information. They purchase securities, balance portfolios, and aid in retirement preparations. However, the main gap lies in its inability to venture out of a programming system. For example, a client cannot ask a machine for proper guidance is he is deliberating on starting an educational plan for his children the same way he can talk to a traditional consultant. Moreover, they cannot give warnings regarding your saving habits.

Usually, these software backed tools are more suitable for millennials, who are known to be tech-savvy since this population group is just beginning to explore the investment field and does not have a high net worth yet. This is where the robo-advisors enter the picture, because it is accessible for the younger crowd while at the same time best fits their present investment status.

Should the two methods be combined?

Since the two strategies differ in terms of process, utilizing them simultaneously is not really the best move. They should be separate aspects, and can also help consultants have an in-depth comprehension of dual markets having the opportunity to of increasing their potential income. As earlier mentioned, online platforms are best for millennials, who do not possess a significant amount of wealth yet. However, the baby boomers may be more comfortable sticking to the conventional way of obtaining assistance.

To put it simply, an electronic program would be a good preparation for the Y generation to have an idea about handling their money despite not having a fully-enhanced portfolio. This way, as their funds and assets increase overtime and become eligible for a personal consultancy, they already have a background on what to expect.

For the consultants, this would also be beneficial as it allows them to develop their customer base without having to divert most of their time for individuals who are yet to develop their portfolio. Once they are ready for the transition to traditional consultancy, this is where they can enter the picture to advertise their offerings.

Overall, both methods are of varied importance and should not be taken as irrelevant. Although technology cannot fully replace the original way of advising, it would soon be of use for both parties. Keep older clients satisfied with your consistent guidance, and aim to attract young ones to embrace robo-advisories first.