Automated Investment Platforms

Tailored Financial Advice

Robo-Advisors are automated investing systems that offer inexpensive portfolio management and tailored financial advice. They analyse an investor’s time horizon, financial objectives, and risk tolerance using algorithms before building a personalised investment portfolio.

For novice investors and those without the time or knowledge to handle their own investments, robo-advisors are a popular choice. Investors who wish to reduce their investing expenses should consider them as well. Continue reading to find out more about the market dynamics of robo-advisors, financial planning, security issues, etc.

Usefulness of Robo-Advisors for investors

Breakthroughs in technology have profoundly transformed the monetary landscape creating fresh avenues to connect with unbanked segments. Innovations like mobile tech, digital payment solutions along with blockchain-based breakthroughs have all played central roles in expanding accessibility to much-needed financial products within marginalized communities. By strategically leveraging these technologies financial institutions startups and tech companies are now able to provide cost-efficient easily accessible and safe fiscal solutions benefitting individuals who hitherto had been excluded from established banking channels.

Lack of awareness

Robo-advisors and their advantages are still mostly unknown to investors. The industry of robot advisors faces a difficulty here because it needs to inform investors about the advantages of robot advisors and how they may assist them in achieving their financial objectives.

Growing awareness of financial planning

Crafted by Safaricom and Vodafone, M-Pesa functions as a mobile money service which has transformed digital payments and financial services primarily across East Africa particularly Kenya.

Traditional financial advisors' competition

Competition from traditional financial advisers is one of the biggest problems that Robo-Advisors have to deal with. Conventional financial consultants provide a more individualised and practical investing experience. Some people who want more direction and assistance from their investment advisor may find this appealing.

Security concerns

An extension of the popular ride-hailing platform Grab, Grab Financial Group extends its reach in Southeast Asia by providing digital monetary services comprising e-wallets, loans, insurance plans, and investment opportunities.

Adoption of digital technologies

The accessibility and usefulness of Robo-Advisors for investors are being considerably improved by the growing adoption of digital technology, such as smartphones and the internet. These automated investing platforms are easily accessible through internet and mobile applications, providing users—especially those who are on the go—with a seamless and simple experience. The democratisation of investment opportunities and the ability for investors to manage their portfolios with ease and flexibility are the results of the digital financial services revolution, which also helps to explain why Robo-Advisors have become so popular in the fast-paced financial world of today.

Market Dynamics

As investors look for easy and inexpensive methods to invest, robo-advisors are growing in popularity. Compared to conventional financial consultants, robo-advisors have a variety of benefits, including:

Lower cost

Compared to conventional financial counsellors, robo-advisors often have cheaper costs. This is possible because they can automate a lot of the manual procedures that traditional investment consultants carry out.

Convenience

Robo-Advisors are convenient and simple to use. Investors may establish an account in a matter of minutes, begin investing, and manage their account online from any location.

Accessibility