Robo-advisors and wealth management

Author

Kok Fai PHOON
Cher Chiew Francis KOH, Singapore Management UniversityFollow

Publication Type

Journal Article

Version

acceptedVersion

Publication Date

12-2018

Abstract

The recent rise of robo-advisors (RAs) has threatened the traditional fund and wealth management industry. RAs' assets under management (AUM) have risen manyfold through competitiveness on pricing, transparency and services and better expected returns linked to the use of quantitative finance and technology with less subjective human intervention. This article examines the postulation that RAs have an edge over traditional wealth managers. RAs can combine the judgement and computing resources of both human and machine, or bionic power, to provide alternative wealth management services to meet the diverse needs of private wealth clients. However, the authors expect traditional wealth managers to respond by providing new and improved customized and integrated services at competitive fees.

Discipline

Finance and Financial Management | Portfolio and Security Analysis | Technology and Innovation

Research Areas

Finance

Publication

Journal of Alternative Investments

Volume

20

Issue

3

First Page

79

Last Page

94

ISSN

1520-3255

Identifier

10.3905/jai.2018.20.3.079

Publisher

Institutional Investor Inc.

Citation

PHOON, Kok Fai and KOH, Cher Chiew Francis. Robo-advisors and wealth management. (2018). Journal of Alternative Investments. 20, (3), 79-94.
Available at: https://ink.library.smu.edu.sg/lkcsb_research/6502

Copyright Owner and License

Authors

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.

Additional URL

https://doi.org/10.3905/jai.2018.20.3.079