What Is Robo Advisor Technology and How Can I Use It

By Marianne Chrisos - Published on March 16, 2018
A Guide to Robo Advisor Technology

Technology that helps users make investments faster and smarter.

Here is how robo advisor technology is helping people invest faster.

Technology in banking has helped many people reach their investment goals, as well as helped the finance industry expand their reach to the growing millennial customer base. Robo advisor technology is one of the up and coming tech trends that has helped to revolutionize the banking and finance industries by providing customers with a solution that helps to simplify and streamline investing.

What Is Robo Advisor Technology?

Robo advisory is an online financial advisor service. Traditional financial advisory services are an expensive investment, as it involves individuals tracking markets and making financial trades and purchase on your behalf after learning your goals. With the rise of AI and other technological advancements, it’s become easier for a software program to get your information and make investment decisions based on the goals and preferences you input into the program.

Here are some things to note about robo financial advisors and how they differ from traditional investment advisors:

  • Robo advisor technology is often less expensive than other investment services
  • Robo advisors typically only trade in EFTs
  • Accounts that are serviced by a robo advisors at certain brokerages will often have a financial planning advise on the account if it exceeds a certain balance

What is the Best Robo Advisor?

Much like a bank or financial advisor, what’s best for you will depend on things like preferences and what your goals are. What’s “best” for anyone will depend on what their needs are, but it’s helpful to know what options consumers and businesses have when it comes to automated financial investment. Most large banks now offer some form of robo investing to help them stay competitive with financial startups. JP Morgan, Fidelity investment firm, and Charles Schwab financial services all currently offer some form of robo advice to their new and current clients.

Other robo financial service institutes have grown in popularity with their direct to consumer marketing, simplicity of service, and ease of use.

Stash: Stash makes it easy to create a personalized profile and build an investment profile that automatically invests on your behalf on the schedule you create. Based on your goals and preferences, it can offer suggestions on companies you may want to specifically invest in.

Betterment: Betterment is an independent robo advisor that offers new customers one year of no fee wealth and investment management without requiring a minimum deposit.

Ellevest: Ellevest is another well-known and reputable robo advisor service company that offers accounts with no minimum deposits and cash bonuses to customers with qualifying opening deposit amounts.

There are plenty of other robo advisor services, but these are some of the names that have generated the most attention and trust in the current marketplace. When it comes to minimizing risk in wealth management, nothing is guaranteed, but robo advisors have proven themselves to be a good option for certain people with specific goals. Their user-friendly interface, accessibility, and ability to be used on the devices that consumers use every day makes them a good option for investors just starting out on their savings journey, as well as people with straightforward financial goals.

Marianne Chrisos

Marianne Chrisos | Born in Salem, Massachusetts, growing up outside of Chicago, Illinois, and currently living near Dallas, Texas, Marianne is a content writer at a company near Dallas and contributing writer around the internet. She earned her master's degree in Writing and Publishing from DePaul University in Chicago and has worked in publishing, advertising, digital marketing, and content strategy.

Marianne Chrisos

Marianne Chrisos | Born in Salem, Massachusetts, growing up outside of Chicago, Illinois, and currently living near Dallas, Texas, Marianne is a content writer at a c...

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