<iframe title = “Will Robots Replace Human Financial Advisors?” width=”580height=”385src=”https://www.youtube.com/embed/suUVjOi5tHA?autoplay=1&cc_load_policy=1&modestbranding=1frameborder=”0allowfullscreen>iframe>
<br>Roboadvisors have had a meteoric rise in popularity since their debut in 2008 thanks to the support from millennials and Gen Z. Today, Roboadvisors manage $460 billion, with some analysts predicting it will become a $1.2 trillion industry by 2024.

Watch the {84} to find out why some investors believe it will never replace traditional human financial.

Since their debut in 2008, roboadvisors have had a meteoric rise in popularity. In 2020, they managed $460 billion, a 30% increase compared with 2019. Some analysts predict roboadvising will become a $1.2 trillion industry by 2024.

Investors historically have had two options when it comes to managing their investments. They could do it themselves through something like an online broker or you can work with a financial advisor,” explained Brian Concannon, head of Digital Advisor at Vanguard. “Now, with the advent of roboadvisors, theres a third option, and thats to merge the benefits of professional {72} management and advice with the convenience of an alldigital application.”

Roboadvisorssudden rise to prominence was made possible due to massive interest and support from millennials and Gen Z. According to a recent survey by Vanguard, millennials were twice as likely as young baby boomers to consider using a roboadvisor for investments.

I believe that there are things that technology or algorithms can do better than humans can,” said Taylor Crane, a roboadvisor customer. “And I have no problem trusting a {24} to do that.”

Skeptics do not expect roboadvisors to replace human advisors entirely in the near future.

Clearly, theres always going to be a human element thats missing,” said Jason Snipe, chief investment officer at Odyssey Capital Advisors. “My problem always will be the emotional response. Take a situation like last year when were going through Covid19 and markets are moving a lot, dramatically. … You cant talk to the technology, right?”

To combat this, many roboadvisor companies including Betterment and Vanguard began providing the option of hybrid services that combine both human and digital advice.

“[Some] investors we see crave validation from a financial advisor,” said Concannon. “So for those investors, being able to pick up the phone and have a {84} conference with a financial advisor, have a discussion about their needs and wants goes an incredibly long way to providing them the peace of mind that they so desperately need.”

Time is on the side of the roboadvisory industry as the technology continues to improve and the younger generations accrue more {57}.

I think some combination of the two probably is where we are headed for in the future,” said Snipe. “I think the robo space has room to grow. I think it will obviously modify and change and become even more sophisticated.”

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Will Robots Replace Human Financial Advisors?
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