Robo advice ranges from any number of tools. Mostly, they are about asset allocation or they are about investment strategies and developing your investment portfolio.
As an individual, I can go onto a website at any time of the day or night at a time that suits and get some financial advice. This may involve assessing my appetite to risk, how much money I am willing to lose through to telling me about my financial exposure and telling me how much money I have.
This information helps the robo advisor to scope out an asset portfolio and provide tailored advice on where I can invest my money.
For example, should I be dealing with Australian equities or should I be dealing with Australian property. Essentially, what options are out there for me.
Robo advice is very much about tailoring advice to the individual. It also about having a slick design and presenting information graphics that give the individual insight into their personal financials.
One of the most interesting matters that we are managing at the moment, is for a client who is a robo advisor, to work out what the investment landscape is.
It is an interesting time because most of our clients are large financial institutions and in contrast this is one man who is taking the time to invest in a new market and develop and idea that will work.
One of the reasons that this is interesting is that there are other robo advisers in the market. They have taken big steps, they have got impressive websites. We are very interested in seeing what the space is for our client here.
Some of the inherent challenges are that the process itself is very expensive, but also how do you get the customer and the business-to-business interface to work in such a way that you have a unique value proposition.
In that way, we are not really providing the client with legal advice, we are providing them with practical and commercial advice that offers a space for them in a crowded fintech world.