Will Robo Financial Advisors Replace Humans?

The day may come when robots take every job from every human.

Unfortunately for us, that day is a long way off, and that means we’ll be spending the next few decades working.

And that’s no different for financial advisors.

Probably.

You see, with the rate of change and innovation in automation, it’s hard to predict anything about when a job will be replaced completely by robots. But there are a lot of factors we can look at to help determine when at least parts of a job will be taken over.

And a huge part of this is looking at how much of a job needs a human touch. For example, the more client-facing a job is, the more necessary it is to have a human touch and the more immune that job is from automation.

Even though many aspects of a financial advisor’s job are reviewing portfolios and checking a client’s financial health, a lot of it is also searching for solutions to client problems. And it is possible for a robo-advisor to do much of this, but it’s also possible for Amazon to recommend products to me.

But reading a review from an unbiased user or hearing an enticing pitch from a consultant is more likely to persuade me to use a product or service. So much of a client relationship manager’s job is done off the computer and is geared toward building that personal relationship.

And a financial advisor’s main concerns rest with helping their clients with complicated situations. Many computer software solutions can give advice also, but there’s so many nuanced aspects of a client’s financial life that a human can assess that a computer can’t.

However, there is a massive prospect for human advisors to adopt their autonomous counterparts as co-workers. Humans eventually need rest, but a robo-advisor can help answer a client’s questions online at any time, even when the advisor is off the clock or sleeping.

As long as a financial advisor’s job consists primarily of helping clients solve real problems with real money, it should be safe to say that your local financial advisor should have job security.


This page is not meant to constitute financial advice. For information regarding your specific financial situation, please consult your local financial advisor.

Author: Foxx Financial

We are focused on financial literacy and a want to help others grow assets, reduce and remove debt, or just understand financial concepts better. The site will be updated often so subscribe for more content.

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