5 Things to Know before your Build your Own Robo Advisor

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Robo advisor doesn’t mean low cost and cheap investment accounts

Robo-advisors are a hot topic in the world of investing and wealth management. They have been popularized by companies like Wealthfront, Betterment, and WiseBanyan. But what are they exactly? In this blog post we will give you the details on robo-advisors to help you decide if they would be a good fit for your investment portfolio.

1. What are robo advisors and how do they work

Robo advisors are built with a nice onboarding form. Those forms are meant to mimic human financial advisors. Those forms process data to replace human intervention. This is a scalable process to offer to retail investors to service human advisers would give to private banks or UNW individuals. Human investment advisor are not present during this self-service onboarding. Each answer is processed with a content measurement rule. At the end of the questionnaire, a portfolio management solution is suggested.

Doing the onboarding form you can also find some drop because investors might find the questions too difficult to answer. The form should have audience insight geolocation data to capture investor profile and their device characteristics. The device specificity is important as your investors might not be able to answer too long onboarding on a small iPhone.

Wealthfront, Nutmeg, Vanguard and particularly Vanguard digital advisor offer state of the art robo advisors. Each claim to be the best robo advisors. In most countries including France, the UK or Germany you will find also tax oriented product development where investment advice is not only about the securties but also about tax harvesting. All robot advisor offer at least one connection to a bank account. Some robo advisor offer multiple access or custodian. When you offer multiple access investors can choose where they want to custody their assets.

However, a robo advisor can become quite complex if you start asking questions about retirement plans, tax-loss harvesting, socially responsible investing, retirement accounts, credit score, or goal planning. We suggest you to have a look at our partner solutions Neuroprofiler which offers high-quality robo algorithms for sophisticated onboarding.

2. Who should use a robo advisor

Replacing a human financial advisor might not be something you can offer directly in your company. Your company Partners could be reluctant to delegates investors’ interaction to a machine. However, a new generation of investors will appreciate the gamification of investment portfolio selection. Human advisors can use with their customers the software. The software is then here to show investment management details come out investment products, investment goals with beautiful charts. Creating an experience which engages new prospect with no account minimum.

The minimum investment is usually the catchy advertisement but in reality robo advisers will service investment service based on assets under management. The more investors bring in and more they will get. Net worth is not the only indicator. You can also with InvestGlass build a multiple robo adivsor pannel, where investors based on the capital they want to invest, will view two or three option. Let the client choose a robo advisor…

3. How to build the right one to manage your clients’ money

Thanks to InvestGlass cloud solution you can create a very simple Robo advisory solution. Investglass and boarding forms will facilitate privacy rights as the solution is hosted on swiss servers. Thanks to the computer algorithm, consent choices will automatically suggest suitable investment portfolios.

With InvestGlass onbaording forms and CRM you can quickly setup your own robo adisor. It won’t cost you too much money to orchestrate financial advice and portfolio distribution with a Swiss Cloud-based solution. The CRM measures content performance and will adapt to alternative investments such as wine, cryptocurrencies, real estate, and much more. As InvestGlass is a single-tenant, you won’t be stressed by connectivity – no. more partners process data.

InvestGlass portoflio management tool will help you visualise client assets in seconds and help you beat the market. Yes robo advisors beat the market, at least for cost efficiency.

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4. Best robo advisors ideas

Would you be offering exchange-traded funds ETFs, mutual funds or single lines of private equity or bonds, the Robo advisor will improve the efficiency of your distribution. The Robo questionnaire should not you ask a question, simple advice in form of text or videos could facilitate investors understanding. Audience insights can be measured quickly to understand where the process failed. You should not ask more than 30 questions. Your investors should quickly know what investment account they are receiving and don’t try up sales at this stage. If your customer comes for a robo adviser experience, don’t sell them a credit cards!

As you ask the question, simple advice in form of text or videos could facilitate investors’ understanding. Audience insights can be measured quickly to understand where the process failed.

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5. Is it worth it to use a robo-advisor or should I just stick with my old human financial advisor and paper

Human advisor will not replace the machine. We believe that human advisor will be enhanced with an automated investing solution and Robo advisor offer is absolutely mandatory and his current Covid situation.

Tax-loss harvesting particularly in the cryptocurrency industry will become a challenge in the coming months. Adapting your business with robo advisor offer will differentiate your bank, wealth management practice.

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