The pioneer years of robo-advisors have come to the end and the market will separate the wheat from the chaff. Too many automated investment services target the same, growing - but still not sufficient - client segment to nurture all or most of them. Too few of the automated investment services see their platform through the eyes of a first time user, while many are losing sight of the need for sustaining a customer experience that will - ideally - last for years.
In our new report on the leading robe-advisors worldwide, MyPrivateBanking makes a series of recommendations on the basis of our benchmarking evaluation, among them:
Aiming for transparency is the best policy, especially when presenting the robo-advisor’s pricing and product and process information.
Automated investment platforms need to be subjected to rigorous user experience testing. Looking good is not enough - equally, content must be in-depth.
Robo-advisors risk side-lining themselves if they don’t recognize that clients need financial plans as well as investment portfolios. At least a basic financial planning offer should be considered for inclusion as part of the robo value proposition.
We foresee the need for leading institutions to be more radical and wholehearted in their automated investment initiatives in the next few years, even if this means starting over again with a second robo-advisor to replace their first.