Robo-advising, using computer algorithms to handle some of the rudimentary tasks in managing investors' accounts such as portfolio rebalancing and investment selection, is gaining in popularity. Robos can benefit both the investor and the advisor and will predictably advance in sophistication over time as they increase in function. A recent model that has developed involves the pairing of the human advisor with its "robotic" partner. KCRA's financial services research team spoke with Uday Singh, a partner in the financial institutions practice at A.T. Kearney about this development and the effects of robo-advisors on the financial services industry.
KCRA: What do you think will be some of the short-term industry effects of robo-advice–for instance, some of the positive or negative impact on other channels such as call centers and broker support services?
