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Robo-advisors are starting to grow in popularity in the financial world, but one group likely won’t adopt them.
A new CFA Institute survey reveals that 88% of investment professionals worldwide believe that robo-advisors will replace human advisors that target the mass affluent, or individuals who have $100,000 to $1 million in investable assets.
But only 58% of those surveyed believe that robo-advisors are either somewhat likely or extremely likely to replace human advisors for the wealthy, or individuals with more than $1 million in investable assets.
Robo-advisors make wealth management more efficient by automating a majority of the processes that human advisors currently control. This means that these computerized advisors can offer both mass affluent and wealthy investors a variety of benefits, such as lower fees.
Respondents to the survey also said that robo-advisors would by far have the greatest effect on the financial services industry both one year from now (particularly in the Americas) and five years from now.
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