Are Robotic Advisors Making Human Counterparts Obsolete?
- Are robots coming for your job? Not yet, says Credit Suisse's Marco Abele.
Depending on one’s perspective, technology will, or in some cases has, caught up with humans in terms of Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co and job performance. In the realm of financial services this is especially relevant, given the deployment of algorithmic trading tools and research in Artificial Intelligence (AI) Artificial Intelligence (AI) Artificial Intelligence (AI) is a term coined by in 1956, which defines the automation of robotics to the actual process of robotics.The evolution of technology has since led to the gradual adoption of AI in several aspects of our lives. One of the most pertinent is its impact in the financial services industry, which provides a wide range of possibilities moving forward.Ways AI Can Transform FinanceAI has the potential to transform the financial services industry forever. This can take shape in Artificial Intelligence (AI) is a term coined by in 1956, which defines the automation of robotics to the actual process of robotics.The evolution of technology has since led to the gradual adoption of AI in several aspects of our lives. One of the most pertinent is its impact in the financial services industry, which provides a wide range of possibilities moving forward.Ways AI Can Transform FinanceAI has the potential to transform the financial services industry forever. This can take shape in ).
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Across many other sectors such as manufacturing, machines have replaced humans en masse, circumventing mounting labor costs. In the financial services realm, financial advisors have faced the same scrutiny, begging the question – will they be replaced by new digital tools or robotic-advisors?
Credit Suisse’s Senior Executive Marco Abele does not see much risk for human financial advisors going extinct. Rather, he sees the advent of technology as playing a complementary role to financial advisors - however he does not rule out robo-advisors eventually redefining the field.
Mr. Abele presently serves as Credit Suisse’s Head of Digital & Private Banking. According to a recent Q&A conducted in-house, the propensity of digital and analogue are not binary in nature and new technology will serve as a benefit to existing financial advisors, supporting a variety of tedious and more time-intensive tasks, which should in theory free up more time for clients.
This phenomenon is already on display at Credit Suisse, following the deployment of new technology earlier this year – in this instance tablets with speech recognition effectively overtook all documentation tasks, freeing up staffers to focus on clients. More broadly speaking however, Mr. Abele does not see grounds for panic setting in amongst financial advisers, nor does he believe humans will be replaced by robots in the near future.
For all the talk of the industry and technology reaching a key inflection point, independent robo-advisors presently manage around $20 million worldwide, a number that is expected to climb to $450 million by 2020 – this figure pales in comparison to assets under human management, which is in the trillions.
According to Mr. Abele: "The generation of today's 15- to 35-year-olds seeks out the offer that suits them best. Whether that offer comes from a 160-year-old bank or a social network is completely irrelevant. We have to offer the best solution or they will go somewhere else."
Depending on one’s perspective, technology will, or in some cases has, caught up with humans in terms of Execution Execution Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co Execution is the process during which a client submits an order to the brokerage, which consequently executes it resulting in an open position in a given asset. The execution of the order occurs only when it is filled. There is typically a time delay between the placement of the order and the execution which is called latency.In the retail FX space, reliable brokers always strive to deliver best execution to their clients in order to maintain a solid business relationship with them. This is a co and job performance. In the realm of financial services this is especially relevant, given the deployment of algorithmic trading tools and research in Artificial Intelligence (AI) Artificial Intelligence (AI) Artificial Intelligence (AI) is a term coined by in 1956, which defines the automation of robotics to the actual process of robotics.The evolution of technology has since led to the gradual adoption of AI in several aspects of our lives. One of the most pertinent is its impact in the financial services industry, which provides a wide range of possibilities moving forward.Ways AI Can Transform FinanceAI has the potential to transform the financial services industry forever. This can take shape in Artificial Intelligence (AI) is a term coined by in 1956, which defines the automation of robotics to the actual process of robotics.The evolution of technology has since led to the gradual adoption of AI in several aspects of our lives. One of the most pertinent is its impact in the financial services industry, which provides a wide range of possibilities moving forward.Ways AI Can Transform FinanceAI has the potential to transform the financial services industry forever. This can take shape in ).
Don't miss your last chance to sign up for the FM London Summit. Register here!
Across many other sectors such as manufacturing, machines have replaced humans en masse, circumventing mounting labor costs. In the financial services realm, financial advisors have faced the same scrutiny, begging the question – will they be replaced by new digital tools or robotic-advisors?
Credit Suisse’s Senior Executive Marco Abele does not see much risk for human financial advisors going extinct. Rather, he sees the advent of technology as playing a complementary role to financial advisors - however he does not rule out robo-advisors eventually redefining the field.
Mr. Abele presently serves as Credit Suisse’s Head of Digital & Private Banking. According to a recent Q&A conducted in-house, the propensity of digital and analogue are not binary in nature and new technology will serve as a benefit to existing financial advisors, supporting a variety of tedious and more time-intensive tasks, which should in theory free up more time for clients.
This phenomenon is already on display at Credit Suisse, following the deployment of new technology earlier this year – in this instance tablets with speech recognition effectively overtook all documentation tasks, freeing up staffers to focus on clients. More broadly speaking however, Mr. Abele does not see grounds for panic setting in amongst financial advisers, nor does he believe humans will be replaced by robots in the near future.
For all the talk of the industry and technology reaching a key inflection point, independent robo-advisors presently manage around $20 million worldwide, a number that is expected to climb to $450 million by 2020 – this figure pales in comparison to assets under human management, which is in the trillions.
According to Mr. Abele: "The generation of today's 15- to 35-year-olds seeks out the offer that suits them best. Whether that offer comes from a 160-year-old bank or a social network is completely irrelevant. We have to offer the best solution or they will go somewhere else."