The future of business could quickly become semi-human and semi-robot, with the integration of robot advisers. The robot advisory approach has known a growth in the recent years, and many business make use of these in the Financial sectors.
Robot advisors can be classified into three models, but they all have the same aim. The first model use systems to recommend stocks while managing portfolios. The second model which are hybrids, combine recommendations from computers and advices from humans. As for the third model, it is more advanced. It uses dense algorithms to generate and manage active portfolios. There is a debate on whether these robot advisors should be used as they are sold for less than what a human advisor would charge.
Some firms agree that human help is no longer needed as robot advisors can perform much better. Firms which are using these robots, appreciate the aggressive moves they make, to reduce the minimums fully. Also, they are more reliable as human advisors might be unable to beat the market. Plus, as per a study, humans often make haste decisions when it comes to the finances. The research has shown that the human mind works on pattern and might overlook important data. These little details can affect the company financially. Based on this, some firms believe that robot advisors are less likely or would not make mistakes at all; they have been programmed to inspect all the data. Human investors might also have financial incentives which are not always good for investors or firms. They are also quite expensive as they are paid hourly and are given commissions.
On the other hand, critics have a different approach when it comes to robot advisors. Critics state that despite that digitalised advisers can work as human, they cannot replace the expertise acquired by flesh and bone. Human advisers are not going to be eradicated so soon. Many firms still prefer the personal and human touch. If you too are more keen about the humanity, you can visit Lucky Pants Bingo. On this best online website, the human touch is omni-present in the bingo rooms. The chat rooms at Lucky Pants Bingo are hosted by wonderful chat moderators. This way the rooms stay lively and socialisation is always on the menu!
Financial advisors are more attractive to firms, as they come with the willingness to make analysis, understand the company’s vision and give a while picture of their research. Critics also state that robot- advisors work in the interest of advisors, rather than the client. A financial advisor will weigh the pros and cons of an investment for it to be the best for the client. But robot- advisors will see only the profit which the company will make, and will go ahead with it.
Without any doubts, this debate will be going on for many years. While some firms prefer the traditional way of working, others are more prone to try new technologies. Ultimately, it is about what firms want.