Robo-Advisory Guide for Smart Financial Management

What is Robo-advisory?

In the FinTech realm, robo-advisory refers to automated solutions that assist with financial management, utilizing artificial intelligence (AI) and machine learning (ML) technologies alongside traditional statistical algorithms. Robo-advisory is often categorized under a specific FinTech niche known as WealthTech.

The user journey typically begins with consumers completing comprehensive online questionnaires about their financial goals, risk tolerance, and investment expectations. Robo-advisors(2) utilize sophisticated algorithms to determine an asset allocation that aligns with the client’s needs, managing the portfolio by rebalancing it, executing transactions, and performing tax-loss harvesting, among other actions, which saves time, minimizes risk, and can potentially lead to higher returns.