Cofounder & Director of Finametrica
Robo advisors are, beyond any doubt, hugely disruptive to the financial advice market. But not in the way that many people expect.
Many commentators and analysts are still focused on trying to pick the ‘Uber moment’, when robos wipe out the old world by creating a new market condition. But that simply isn’t going to happen. Robos are not disruptive in the Uber, Google or Apple manner – they are not a new paradigm.
Robos are disruptive because they change the speed, accuracy and supply of financial advice processes – just as the power loom changed the speed, accuracy and supply processes of woven cloth. Good cloth was no longer hard to find. The hard part became finding customers to buy it all. Make no mistake – the robo revolution is real and it is happening right now.
But, at the same time, the robo space is inherently confusing because it is evolving so rapidly, and dramatically. The robo species is becoming so diverse that we now need to name the many different breeds of robo adviser. A Chihuahua and a Great Dane are both dogs, yet there are distinct differences between them. In the robo advice world the differences between an enterprise robo and an entrepreneurial robo can be...