With technology increasingly seeping into every aspect of our day-to-day lives, it should come as no surprise that it is also playing an increasingly greater role in how we experience financial services. More and more, people desire to consume information in a different way—namely, through technology and one another, whether there is, or not, a person-based service interaction involved. And this trend will only grow as millennials continue to reach adulthood and enter the workforce and as boomers continue to increase their appetite for, and aptitude with, technology.
Today’s youth are often referred to as “digital natives.” This generation has never been without smartphones or “touch-based” screen experiences. They have been raised communicating via text messaging and completing transactions through apps. As a result, they have a comfort level with technology not experienced by previous generations. In addition, as boomers begin to enter retirement they are using their spare time boning up their working knowledge of technical devices. So what does this mean for personal financial services?
As is the case with many other industries, the financial sector must continue to evolve in order to engage not only millennials, but also any consumer who would rather interact with a mobile device rather than go and speak to a person regarding their finances. Enter the robo advisor, one in many technically powered innovations to come.
According to Investopedia, a robo advisor “is an online wealth management service that provides automated, algorithm-based portfolio management advice without the use of human financial planners.” Such services have been growing in popularity throughout the investment sector of the financial industry.