- Purpose
To assess and comprehend the disruption impact being caused by Roboadvisors to the traditional wealth management system as we know it. By understanding the drivers of this movement, the future of the industry will be better understood by its incumbents and its consumers.
2. Design/methodology/approach
Implementing a conceptual analysis approach, the systematic literature review required comprehensive note taking in order to highlight all possible references (Finney and Corbett, 2007) to Roboadvisors in journal publication. This involved developing a concept matrix and implementing literature review theory used in previously published work.
3. Findings
The enablers to the adoption of this disruptive technology were discovered and understood following the analysis carried out in this paper. These are the drivers of change to the traditional wealth management framework and as such their comprehension is vital for the continued growth of digital advice firms but also in the defence against the disruption these are causing to traditional advisors.
4. Research limitations/implications
The implications of this research include a foundation for future research in the area of consumer interaction with financial related technologies. Analysis of the concept matrix will yield the areas where there exists a paucity of research in the realm of digital wealth management advice and as such further disruption may be required to evoke deep academic interest in the subject matter. Performance data is relatively infant and recent market turbulence makes it hard to accurately decipher whether or not performance is influenced by the market or the robo approach.
5. Practical implications
Information transmission from heavily progressive geographic region of the United States to less developed region in the EU as technical design insights are offered following the outlining of the digital asset management interaction drivers. Guidelines on how to measure robo performance versus human performance pending the performance data.
6. Social implications
Societal impact potential is high as understanding the cause for consumer adoption will allow: better educated decision making when seeking financial planning advice, better designed Roboadvisors catering more accurately to the actual wants of the consumer.
7. Keywords
- Roboadvisor
- Robo-adviser
- Automated asset management
- Digital asset management
- Disruption
- Financial technology
