Attack Of The Robo Advisor Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Attack Of The Robo Advisor Case Solution

Case Analysis

Robo- Advisors are now changing the approach of the old traditional financial advisors as well as planning onto how the old traditional approach should be changed through the new approach of Robo – advisors. As the Robo advisers offer better investment solutions to the clients and people now prefer to use Robo advisers with a payment portal, where they can invest directly. However, this service offering is not easy, as it would have to meet certain requirements. Robo advisers provides only suggestions regarding the policies, which are are called financial brokers and are not called regular financial organizations, such as: the Financial Security manager. Financial funding brokers only make others understand only a few products.

Issues/Problems

Robo-Advisory depend on a scientific method. Yet, Robo-advisors facade skepticism from high authorities. There comes the conflict of interest, as there is a pitiable valuation of risks.The authorities were not fulfilling their duties properly. There are numerous new openings for Robo-advisor to explore and invest in the projects. To attract the new generation Robo-advisor can increase the use of technology, because it is important to attract the new generation.

Actually, the market is highly competitive and it is important for Robo-advisor to maintain a good position.

Secondly, it was never clear to them that they will use fully automated investment without any personal involvement. Lastly, the government rules and regulations can create future threats for Robo-advisor

There is no question that the key principle of managing money in a highly balanced industry is difficult and more expensive. New companies with quarterly consulting services should learn how the legal authorized companies operate, making it even more important to work with traditional asset management firms. From the bank’s point of view,half yearly advice remains important in terms of providing customer service. The banks are always involved in certain rules and regulations and the customer who feels entering office creates unwatchable trust. Companies with whom customers are involved,either in investing purpose or in having the accounts in the bank, would be in trouble if they are not providing the services, which the customers require.

Like the services, delivery can be through an online process as well. In the financial services sector, companies like fidelity, which manages its clients’money, has such a good service that the customers don’t even ask about their money,which is because of the trust factor. Outside of the industry, if we take the example of Uber;you might not have met many new Uber drivers with each new ride booked by you, but it is the working model of Uber that you trust on, which makes the company reliable for you and worriless if there’s a new driver with each ride.After observing the part of the market growth; Robo-advisors’ future could be perceived as stable and good. In this case, we are looking at the expected progress in the near future rather than the impact and symptoms that could be the key factors in the future.

Case relevance and implications

Robo advisors does provide many bigger advantages to the companies as it reduces a huge amount of cost as compared to the old financial advisors. By changing from the old advisors to the new ones, reduces the cost incurrence to a significant level, and with that saving of expense; the company can again reinvest in other businesses. Robo advisors have a total cost of 0.2 to 0.6 $% as compared to the traditional advisors, who charge 1 to 3%.With the quick development of modern technology; trust is playing a key role these days. The trust has been considered by many previous studies as one of the most widely accepted clarifications that rely on a will to risk and give up control over the person who creates trust in the consumer’s mind. Trust and expectations are difficult concepts and can be tested in a variety of ways. For example, interpersonal trust means the trust between two people or groups of people. It is often studied based on awareness of the fact that has a deep effect on a person's decision and behavior...........................

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Attack Of The Robo Advisor Harvard Case Solution & Analysis