What is a Hybrid Robo Advisor? New developments in financial planning.

Daniel Kelley |

What is a Hybrid Robo Advisor? New developments in financial planning.

One of the growing trends in the financial services industry is that of the automated (Robo) investment advisor. A typical robo advisor removes the financial professional from the equation and relies solely on investment algorithms to manage the client’s investments. The hybrid robo advisor combines the attractive features of the automated investment solution with the personal touch and expertise of a dedicated financial professional to help walk the investor through their financial fog. Many customers feel more at ease when there is someone they can talk to in order to educate them on their investments and the different stages of their financial journey. 

With low fees and low account minimums this new medium for managing money seems ideal for younger investors who are trying to build wealth or save for a large purchase. It is a great starting point for those looking to take a more active role in managing their finances who don’t yet have the complications and complexities of someone with retirement on the horizon. The digital approach allows technology to be leveraged in order to reach a broad group of clients who may not know where to start or have not had aces to financial planning in the past.

With younger generations growing up with more and more technology could the hybrid advisor just be the next step in the digital world?