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Robo-adviser (also called automated investment adviser, digital advice platforms etc.) generally refers to a digital platform which makes use of algorithms and data-driven strategy to provide financial advice, e.g. automatic portfolio construction or model portfolios based on a client’s personal circumstances.

There are different types of robo-advisers. Some provide fully automated investment advice with no human involvement, while other hybrid services provide an option for clients to contact a human adviser depending on their needs.

The types of financial advice services provided by different robo-advisers may also vary. Some robo-advisers provide goals-based advice whereby pre-defined model portfolios are offered with different underlying strategies to achieve individual goals such as planning for children’s education, retirement etc. Others may provide pre-defined model portfolios calibrated to the client’s level of risk tolerance.

 

4 April 2019