News, Vision & Voice for the Advisory Community


Thoughts on 'robo-advisors' served cold, compliments of Kitces and Waymire

With the potential for channel conflict, wirehouses are the most handcuffed in thwarting automated financial 'advice'

Author Guest Columnist Jack Waymire June 15, 2014 at 7:40 PM
no description available
Michael Kitces: Most of the Wall Street firms will be reluctant to bypass advisors and go direct to investors.

Marty Morua

Marty Morua

June 16, 2014 — 1:12 PM

Comprehensive Services

Two little words that stood out in this interview. That’s probably the 'key’ to what financial advisors (real ones…..humans) need to offer in order to differentiate themselves from the Automated Investment Services (Robo-Advisors). Both serve different markets and both have their own unique value propositions.

Marty Morua

Stephen Winks

Stephen Winks

June 16, 2014 — 7:43 PM

beyond human comprehension

Stephen Winks

Stephen Winks

June 16, 2014 — 7:54 PM

My earlier comment was lost in transmission.

Advice as defined by statute requires continuous comprehensive counsel which means advanced technology (Robo Advice) is essential to address and manage an unlimited number of investment and administrative values for an unlimited number of clients in real time. There is no such thing as robo advice, just tools that allow advisors to manage information in a manner that transcends the three dimensional ability of humans to reason.

Robo advice should not be feared as it greatly elevates the level of counsel it is possible for advisors to render and manage. But it does render flipping high cost mutual funds as a service of little or no value.

The number of advisors who are accountable and responsible for recommendations will greatly increase while the number of brokers who are neither accountable or responsible will eventually disappear.


Related Moves

Alan Moore can't catch a break; AdvicePay CEO exits after seven months, adding job he hoped to escape back on top of XYPN role; search on for new AdvicePay president

The job will be step below CEO, and new hire must have affinity for both touchy-feely culture and aggressive growth in Montana's wide open expanses

March 9, 2024 at 2:58 AM

July 11, 2023 at 2:46 AM

Alan Moore is the No. 2 busiest man in the RIA business and he just convinced the No. 1 busiest man to budget $200,000 to hire a 'rockstar' to replace him

Alan Moore is CEO of both XY Planning Network and AdvicePay -- and he has three young kids; Michael Kitces agreed to let him hire a full-time replacement CEO for AdvicePay -- with some giant reqirements for the new exec.

February 14, 2023 at 3:15 AM

RIA Quick Takes: Orion deepens DFA embrace by using it as portfolio manager-inside-ETF ~ Hardship withdrawals surge at Vanguard and Fidelity ~ Schwab hires 400 ~ Fidelity flips six funds into ETFs ~ Kitces makes list before Christmas ~ Amit Dogra has $1 billion of good news from his new Portland gig

Americans are struggling, though jobs are plentiful; Larry Fink's ESG zeal costs BlackRock another client, just as the Vatican issues ESG guidance; UBS says we didn't like you anyway to mass affluent and Michael Kitces and Craig Iskowitz join forces.

December 3, 2022 at 3:16 AM

See more related moves

Mentioned in this article:

Portfolio Management System
Top Executive: Andy Rachleff

Paladin Digital Marketing
Consulting Firm, Marketing & Public Relations, Investor Referrals
Top Executive: Jack Waymire

Consulting Firm
Top Executive: Michael Kitces

Betterment, LLC
Financial Planning Software
Top Executive: Jon Stein

RIABiz Directory

The Industry Sourcebook for RIAs

   |    LISTING

RIABiz Directory sponsored by:

Directory Sponsor Logo