RT Journal Article
SR Electronic
T1 Robo-Advisors and Wealth Management
JF The Journal of Alternative Investments
FD Institutional Investor Journals
SP 79
OP 94
DO 10.3905/jai.2018.20.3.079
VO 20
IS 3
A1 Kokfai Phoon
A1 Francis Koh
YR 2017
UL https://pm-research.com/content/20/3/79.abstract
AB The recent rise of robo-advisors (RAs) has threatened the traditional fund and wealth management industry. RAs’ assets under management (AUM) have risen manyfold through competitiveness on pricing, transparency and services and better expected returns linked to the use of quantitative finance and technology with less subjective human intervention. This article examines the postulation that RAs have an edge over traditional wealth managers. RAs can combine the judgement and computing resources of both human and machine, or bionic power, to provide alternative wealth management services to meet the diverse needs of private wealth clients. However, the authors expect traditional wealth managers to respond by providing new and improved customized and integrated services at competitive fees.TOPICS: Quantitative methods, wealth management