Robo-advisory: The future of banking financial advisory services


November 2017

Efma and Axis Corporate are working on the Insights for a "Robo-Advisory - The future of banking financial advisory services” report.

There are several factors which are influencing the need to implement a Robo-Advisory model in Retail and SME Banking:

- Products & Services Digitalisation: for the target audience who currently does not have a financial advice

- Banks are coming under intense pressure to use the latest technology to cut costs and improve efficiency. These platforms boost efficiency in the commercial process.

- Banking needs to offer alternative investment options in an environment of low-interest rates

- The need to establish high-level criteria for advice and recommendations, and the knowledge of the global risk of the client.

The Robo-Advisory platforms can be the first step of the digitalisation of financial advisory services as a differential value of banking, with a direct impact on the scope of customer acquisition, loyalty and operational efficiency.

The objective of this report is to show what strategies Banking is using to integrate portfolio management within their digital channel. In addition, we would like to offer a road map to help banks integrate this service to deal with potential competitors and their strategies to attract clients.

We will analyse what impact the digitalisation of these services will disrupt traditional service models.  Analysing whether they will become a complementary channel to the digital one, a channel that will be totally displaced or an exclusive channel for high added value financial advisory services.

Finally, we will study what are the formulas that banks choose to advance towards a digital banking model and how banks are living the evolution of the customer journey.

The question we aim to address through the report is whether banks should respond to the uptake of robo-advisory and strategies to integrate portfolio management within their digital channel.

Keywords : Financial advice , Robotics/AI