Financial tech has been bringing about a lot of changes in digital trading systems, a lot of experts have been admiring it while others are discouraging its involvement. In this era of digitalization, it was only about time that we got fintech in our systems. Though, with a lot of comments, it has been made a clear fact that fintech was disrupting the wealth management system. With the world revolving around innovations in the tech industry, the era is raising questions on the system which are run manually. The involvement of Robo advisors as formulated by fintech are putting a question mark on the financial advisors who have been proving themselves by adapting to the changes in the technological world and the social world.

The wealth management involves financial and investment advisors who advise and provide services to the individuals who have higher net worth. These people can easily contact their wealth managers to deal with their financial issues. They do not have to roam around and directly deal with all the firms and people related to them. The advisors help them manage and plan their retirements, plan their insurances and manage their portfolios to put out there.

The digital advice platforms or robo advisors are digital platforms which are automated to provide financial and investment managerial advice. These robo advisors are actually operated using algorithms, which determine the situation and give advice accordingly after they have collected all the details, they might require from the individual they are dealing with. Some of the robo advisors do not only give advice, but they would also automatically make financial transactions which are appropriate and justified. The robo advisors are not new to the scene, they have been around for a while. At first, the robo advisors were being used by the wealth managers themselves, as they would use the robo advisors as a source for more information and analyze it themselves to gain insight and finally come up with a final decision that they would provide their client with. The advantage that the wealth managers gained was that they did not have to spend as much time on data entry, collection, and management as they use to before, now they could be more focused on building healthy relationships with their clients in order to form a structure between them where the communication was easy and more productive. It was also essential as the job was critical. These relationships are extremely critical as the management also depends on them.

The robo advisors that have been created are very easy to replicate these days, and therefore every other company or firm is offered similar services with almost no difference between them. The thing that could have been done is to spend more money on a more advanced tech, but that could be expensive as well.

The robo advisors were once considered to be the evil ones, for they could replace the humans and do their job instead, but now it has been established that that does not have to be the case. The wealth managers or advisors can now use the technology in their favor and let the tech do its job, while they can have the time to improve their relationships with their clients. They can focus more on prepping for engaging with the clients, planning, and managing.

While there have been mixed reviews about how the fintech have been disrupting the rhythm of the wealth management system, there could be something to look up to, the upsides that it is providing to the entire industry.