WEALTH TALK SUMMARY - The role of robo-advisors in banks - will the RM stay?
Speaking at Hubbis’ Digital Wealth event in Singapore in June – Chandrima Das of Bento questions the extent of the impact that robo-advisory will likely have on Asian wealth management.
With over 18 years’ experience in asset management and private banking, Chandrima Das is well-qualified to judge trends and changes being experienced within the industry.
Now chief executive officer and co-founder of Bento, an Asia-based B2C bionic adviser, she believes there is still a grey area where banks or wealth managers can work with robos – or at least implement automated advisory – and benefit from the client’s changing perception, while also thinking that there is a mind-set differential.
Das also sees a huge gap in the perception of where the client is at, compared with the wealth manager, which could lead to an area of disruption for a robo within a wealth manager or banking platform.
The same situation is confronting HNW individuals and advisers – in terms of whether it is prudent for them to have part of their assets managed by automated or semi-automated advisers.
Das also thinks artificial intelligence is not as powerful yet as it will be in the future, citing current portfolio optimisers where the machine can come out with an efficient frontier taking in 500 data points within nanoseconds. Compared with a human doing the same task, Das worries that a lot of judgment would creep into the equation; whereas customisation can be done with a human interface, as a combination between the machine and the man.
She also thinks that in terms of client onboarding, while a large part can be done online, there is also a need for a human element involved as long-term, fundamentally-driven exposure, and long-term, fundamentally-driven assumptions, still need a human hand.
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