Are you thinking of integrating a robo advisory platform into your wealth management?
Maybe you have been considering a lot about it and want to know if it would be a worthy investment or maybe you have just heard about it and want to know more.
Well, in either of those cases, you have come to the right place.
Robo Advisors, without a doubt, do have a fair share of limitations which is why they are there to assist wealth managers and not replace them. Since a long-term investment plan needs proper planning, it is crucial that a financial advisor is in the equation rather than just a Robo Advisor.
Now, why am I starting with the limitations of the Robo Advisors?
Because I want you to understand that Robo Advisors, with all their benefits, still need you to make sense of the mechanical output that they generate. They still need a pair of human eyes to drive decisions from the data, not just to reduce risks but also to increase the returns of your customers.
With that said, here are a few advantages to integrating a Robo Advisory into your wealth management platform.
You could onboard more people with Robo Advisors
Now, from a strictly business perspective, you need more clients to scale. However, not all those who can afford to invest are interested in third-party wealth management solutions. Robo Advisors, being more pocket-friendly could be an introduction of sorts to the uninitiated.
Rebalancing portfolios is easier with Robo Advisors
Rebalancing is the realignment of weightings of a portfolio of assets and involves selling and buying of assets to maintain the desired risk. It can also improve returns. Robo Advisors could help wealth managers in rebalancing the portfolios. They can do it quickly which helps in doing it more often.
Robo Advisors help on portfolios with multiple accounts
Handling investments on hand could be a tedious task and it’s better if it’s handled by a Robo Advisor, especially if there are a lot of accounts on the portfolio.
Robo Advisors are time savers
Since Robo advisors are essentially automated, it gives the wealth managers the convenience to focus more on other things like asset allocation, relationship management etc. This helps in making the most of the time available for each client.
With all the advantages stated, let’s go back to our initial question, Is Robo Advisor a good investment manager?
Well, It’s a judgement call.
Robo Advisors are good investment managers only when there’s a wealth manager involved. It’s more like a team where the Robo Advisor takes care of the time-consuming data-driven tasks and the wealth manager takes care of the decision making based on the comprehensive analytics of the data.
Valuefy’s Wealthfy has a Robo Advisory platform that’s helping wealth managers by providing end to end advisory with real-time intelligence. It is embedded with a robust portfolio data engine and is capable of handling multi-asset and multi-currency portfolios with ease. It also has adaptable and flexible white labeling that allows you to interweave it into your existing legacy systems.
With Wealthfy, your clients will experience a simplified user experience with intuitive dashboards and data visualizations that turn complex data into concise insights.
Know more about how Wealthfy will transform your wealth management firm, here.