A number of financial initiatives these days are directed at millennials who believe in what they read or see online. One such initiative is “Robo Advisory” which helps investors with their online investments. Robo advisors are now a crucial part of a wealth management digital platform, which uses artificial intelligence and data-driven information to provide accurate financial advice to new and experienced investors.
The Emergence of Robo Advisory in India
When robo advisory services were initially started, many investors assumed that it was of use to investors with less or zero financial knowledge. But, with a little human intervention, robo advisors can now plan and rebalance a complete investment portfolio and suggest the right fund to choose based on the client's financial profile. Thanks to the efficient advice provided, a number of companies using robo advisory services have seen a sudden spurt, but the funding in the sector still needs to reach its high. However, as per the experts in the industry, one can expect a rise in the digital wealth management platforms and wealth advisory services as there is a need to reduce the human intervention when it comes to sales jobs as well. Wealth advisory can see a sudden sprout in the coming years as the industry as a whole is under a strong tailwind with the adaption of technology and regulatory changes.
Technology is expected to play a vital role in wealth advisory than compared to past, given the usage of smartphone, increase of comfort using online and in-app services/transactions and the decrease in commissions charged.
Any digital wealth management platform needs to focus on the advisory services provided as there is a need to tailor them to meet the needs of Indian investors. Most of the mutual fund platforms have responded to the investors and market needs and have evolved as successful hybrid advisory platforms-where investors can receive human and robo advisory services. Such advisory services go by the name of “Bionic advisory” and this works best in Indian markets.
The needs of Indian financial markets are unique and it would certainly take time for investors to accept pure robo advisors. However, robo advisory services certainly have a long way to go in terms of both investments and advancements.
