Rohith Srinivasan, Senior Consultant, TCS Financial Solutions
The typical Hollywood interpretation of Artificial Intelligence or Robotics is that of a baleful, coldly calculating harbinger of destruction, mission bound to decimate anything vaguely human in an apoplectic future. Life it seems, ironically, does follow fiction in some respects, at least for the Wealth Management (WM) industry which is, today, grappling with the rise of the robo advisor.
The advent of this technology is being touted as a disruptive development that will radically alter the advisor relationships and cost structures, which have characterized this industry to date. Indeed, several analysts have somewhat gleefully announced the imminent demise of many segments within the Wealth Management industry.
However, when one digs deeper into the robo advisor model, such an eventuality is not a foregone conclusion. This paper will argue that the fears of imminent extinction of the current WM landscape are greatly exaggerated and the industry is robustly responding to the rise of robo advisors and the Fin-tech startups that are driving them. The industry is now beginning to co-opt and address this disruption in several interesting ways—be it through acquisitions, partnerships or by designing new service models.
Read the white paper.