Robo-advisers should be seen as a way for traditional financial advisers to "deliver deeper levels of advice to a wider client base" not a threat, says Scott Smith, director of research and consulting firm Cerulli Associates. The robo-adviser industry is still in its infancy, but it has already attracted some high-profile investors, including billionaire investor Warren Buffett, who recently invested $45 million into the company that makes Betterment, which Human advisers will still be required as "households continue to seek advice from a professional who can help them manage the turbulent times", said Smith.
Robo-advisers should be seen as a way for traditional financial advisers to "deliver deeper levels of advice to a wider client base" not a threat, says Scott Smith, director of research and consulting firm Cerulli Associates. The company estimates the digital advice industry to be worth $83bn by the end of 2016, with around 75% of those assets held by two "top brand" firms. Human advisers will still be required as "households continue to seek advice from a professional who can help them manage the turbulent times", said Smith.