Document Type:Article

Subject Area:Finance

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On the other hand, financial technology, often abbreviated as Fintech, is used to explain a manifestation on financial sector in this century. The term used to be applied in relation to technology used in the establishment of trade and consumer in the financial institutions at the time. Robo-advisors, through their use of computer algorithms, gives rules for choosing of appropriate investments mainly based upon time horizon and risk tolerance. Thus, the technology of Robo-advisors should be approached by all the retirement and retail investors looking for personal investment advice. The fact that it is cheaper makes it a better choice. The millennials These have been a target of the Robo-Advisors for their investment of their money and they have based their attention on it owing to the fact that human advisors requires more interest and it is said that the Millennials simply don’t trust the human advisors.

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The Millennials had faced a financial crisis before the Robo-Advisors and they would simply not want such a repeat. Financial Advisors and Registered Investment Advisors (RIAs) According to Sironi (153), the financial advisors though offers same kind of service as the robo advisors, decided to work hand in hand with the robo advisors rather than putting a direct competition directly. Financial Advisors and Registered Investment Advisors (RIAs) as a company offering advice on investment and registered found it better to have a fiduciary relationship with Robo-Advisors since they wanted to give the best to their esteemed customers working at their client’s best of interest. Such a hybrid kind of a system creates more efficiency since the human advisors upon obtaining information from Robo-Advisors can also perfume tasks like event planning, budgeting and financial planning.

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