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New robo-advice model emerging

New robo-advice model emerging

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By Killian Plastow ·
August 05 2016

New robo-advice model emerging

A new trend of advisers working with automated advice platforms is beginning to appear, says portfolio management software provider CGI Wealth360.

The paper, entitled The Future of Automated Advice Platforms: Lessons Learned, notes that robo-advice only meets the full demands of "a relatively small segment of investors", but advisers are increasingly utilising the delivery of digital advice to assist clients with broader needs.

"Advice and investment providers can build or acquire a platform offering far more than simply digital advice; it can instead power an environment where a personalised investment program is successfully delivered through adviser, call centre and digital channels, depending on the most effective channel, as well as client preference," CGI said.

When implemented properly, CGI say advisers can use these platforms to mine data and identify client needs more accurately, and better prepare for changes in a client's personal circumstances.

"The more advanced platforms with artificial intelligence can analyse a client's behavioural profile and predict life events and potential attrition, then suggest ways for the adviser to handle such events," the company said.

CGI listed six core abilities these systems need; getting to know clients and classifying them based on needs and goals, using algorithms to recommend an asset allocation, explaining the rationale behind the suggested investment program and making any changes as per client requests, tracking the performance of the investments, reporting to the client, and lastly, adapting the portfolio to suit changes in the client's circumstances.

"The platform also must be integrated with client relationship management applications, so that an adviser can get up-to-the-minute information on an account, regardless of that client's primary advice delivery channel," it added.


CGI noted that the recent trend towards automated advice systems demonstrated "fears that advisers would be cast aside by technology" were misplaced, and that advisers were "as important as ever".

"An automated advisery platform can augment advisers' expertise, ensuring that clients get the best advice, no matter what channel they prefer," it said.

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