Humans vs Robo-Advisors: Why Humans still have the edge


The dawn of the robo-advisor began as recently as in the early 2000s1 in the form of automated portfolio allocation software. The first robo-advisor began working, taking real investments, in 2010 in the United States. So in all, robo-advisory is still in its infancy, mostly developed by startups leveraging emerging technologies or forward-looking financial institutions looking to remain relevant to their customers in an increasingly competitive, automation-frenzied world.

In Singapore today, robo-advisory has a small and steady following with the presence of around a dozen brands offering the service. Not surprisingly, the market is predominantly younger, with investors who tend to be more experimental and looking for an affordable and easier way to grow their savings rather than just putting it in the bank. Robo-advisory also came at a time when bespoke portfolio management was a service reserved for the rich. However, this is no longer the case today. Professional financial advisory is now easily accessible to all. Many are gaining understanding that to unlock the true potential of wealth investment is to take an integrated and holistic approach, and not to just focus on the growing of it.

Personal portfolio management is no longer reserved for the wealthy, but for anyone who wants to realise their best life – a life where hard-earned money is comprehensively allocated towards the needs of protection, preservation, accumulation, growth and distribution. Best of all, it’s planned, curated and evolved according to the owners’ visions. No doubt robo-advisors are quicker, cheaper, faster and completely devoid of emotions as compared to financial consultants. For these very reasons, we want to leverage on the strengths of this artificial intelligence to form a superhuman hybrid force that will really add value to the portfolio of our invested customers.

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