Sumaiya Sidat
Abstract
Within financial-planning, robo-advisors are a financial technology tool capable of augmenting existing service provision. This paper aims to provide an understanding of robo-advisors and their capabilities by conducting an extensive literary investigation and by engaging with financial planners to gauge their understanding of this innovative technology.
To achieve the paper’s objective, a qualitative research approach was adopted, aligning with the interpretivist paradigm. Thirteen financial planners who have been offering financial advice for a minimum of three years were sampled from the Eastern Cape in South Africa, by using snowball and convenience sampling. Semi-structured interviews were conducted and the data derived was analysed through directed content analysis.
Financial planners have a varied understanding of robo-advisors. While some lack clarity on robo-advisors’ nature and scope, there is a prevailing view that they cannot replace human planners entirely.
Robo-advisors could transform current financial-planning methods. However, this paper reveals limited knowledge and misconceptions among financial planners regarding robo-advisors. It is imperative that institutions and professional bodies create awareness of such innovations. Educating financial planners about novel technologies can enhance service offerings, mitigate client attrition risks, and streamline tasks, thereby affording more time for client relationships.
To achieve the paper’s objective, a qualitative research approach was adopted, aligning with the interpretivist paradigm. Thirteen financial planners who have been offering financial advice for a minimum of three years were sampled from the Eastern Cape in South Africa, by using snowball and convenience sampling. Semi-structured interviews were conducted and the data derived was analysed through directed content analysis.
Financial planners have a varied understanding of robo-advisors. While some lack clarity on robo-advisors’ nature and scope, there is a prevailing view that they cannot replace human planners entirely.
Robo-advisors could transform current financial-planning methods. However, this paper reveals limited knowledge and misconceptions among financial planners regarding robo-advisors. It is imperative that institutions and professional bodies create awareness of such innovations. Educating financial planners about novel technologies can enhance service offerings, mitigate client attrition risks, and streamline tasks, thereby affording more time for client relationships.