A good education piece for ‘digital advice 101’ building blocks
Digital automated advice tools support advisers to have rich conversations with clients around wealth management and the advice journey process with a client. Think here of the tools - not just static calculators - that help to simulate real-life situations, goals, objectives and 'what if' scenarios, illustrating how certain decisions will impact a client’s wealth accumulation through to their retirement.
“Linking the terms ‘robo’ and ‘advice’ together is to me the same as saying Pokemon Go qualifies as an Olympic Sport... it all depends on your definition of sport,” Ms Henderson wrote.
“Robo is using artificial intelligence to mimic and predict human behaviour.
“Advice, in its true nature, is goals-oriented and holistic with interrelating elements of a consumer’s cash flow, investment, super, risk and estate planning etc. No robo-advice offering I have seen, and I’ve seen a few, including the Betterments of this world, has solved the challenges of a) behavioural science and b) advice that is goals-based and holistic,” she wrote.
For the record, then, let’s understand the fundamental elements of ‘robo - advice’.
Robo is using artificial intelligence to mimic and predict human behaviour. Advice, in it’s true nature, is goals oriented and holistic with interrelating elements of a consumer’s cashflow, investment, super, risk and estate planning etc.
The rush to produce the “smartest robo system” has seen some companies ignore a central issue, which is what is best for consumers, argues Adviser Intelligence founder and chief executive, Jacqui Henderson.
Let's define ROBO. artificial intelligence (ai) ROBO is the creation of intelligent machines that work and react like humans. It's computer science that incorporates knowledge, reasoning, problem solving, perception, learning and the ability to manipulate. Computers can only act or react like humans if they have an abundance of information relating to the world.
Cloud-based financial planning software provider Adviser Intelligence has finalised a multi-million dollar deal to expand the business.
"We are delighted to have found in Avocado a partner with the right 'can do' cultural fit and which shares our vision of being a pre-eminent source of transformative financial advice technology," Adviser Intelligence chief executive Jacqui Henderson said.
"By unlocking the transformative power of smart personal financial advice, I believe we can make a real social impact, along the way enhancing the advice industry and the financial education of clients."
Gerardo Barranquero, chief executive of Avocado, said the partnership was an opportunity to participate in the rapid evolution of digital financial advice.