Browse Definitions:
Definition

robo-advisor

Contributor(s): Matthew Haughn

A robo-advisor is an artificial intelligence (AI) driven virtual financial advisor. Robo-advisors are a type of expert system optimized for financial services.

A robo-advisor is one example of a software robot, not a physical robot and therefore not technically a robot at all. However, the software supporting robo-advisors does function similarly to the AI that might drive a robot. Investors communicate with their robo-advisors through smartphone apps or over the web.

The software can choose stocks for portfolios according to the balance desired by clients and provide limited financial advice. Like other expert systems, robo-advisors use AI technologies in conjunction with a knowledge base to simulate the judgment and behavior of an experienced human with specialist-level knowledge in a particular field.

Financial institutions can save money by employing virtual assistants to deal with relatively simple requests and pass on more complex requests to human advisors. Human agents themselves often use robo-advisors to respond more quickly to customer requests.

Given that financial advisors are typically well-paid, the software is relatively inexpensive to acquire and maintain. Many in the financial sector also see robo-advisors as a means of getting investing advice to the masses, with associated cost savings. It’s also thought that robo-advisors could promote financial literacy because investors might take more time to explore options without feeling the pressure to make a decision that they might feel dealing with a human.

See an introduction to robo-advisors:

This was last updated in December 2016

Continue Reading About robo-advisor

Start the conversation

Send me notifications when other members comment.

By submitting you agree to receive email from TechTarget and its partners. If you reside outside of the United States, you consent to having your personal data transferred to and processed in the United States. Privacy

Please create a username to comment.

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchCompliance

SearchSecurity

  • black hat

    Black hat refers to a hacker who breaks into a computer system or network with malicious intent.

  • copyright

    Copyright is a legal term describing ownership of control of the rights to the use and distribution of certain works of creative ...

  • keylogger (keystroke logger or system monitor)

    A keylogger, sometimes called a keystroke logger or system monitor, is a type of surveillance technology used to monitor and ...

SearchHealthIT

  • population health management (PHM)

    Population health management (PHM) is a discipline within the healthcare industry that studies and facilitates care delivery ...

  • ICD-10-PCS

    The International Classification of Diseases, 10th Revision, Procedure Coding System (ICD-10-PCS) is a U.S. cataloging system for...

  • U.S. National Library of Medicine (NLM)

    The U.S. National Library of Medicine (NLM) is the largest biomedical library in the world.

SearchDisasterRecovery

  • business continuity plan (BCP)

    A business continuity plan (BCP) is a document that consists of the critical information an organization needs to continue ...

  • call tree

    A call tree -- sometimes referred to as a phone tree -- is a telecommunications chain for notifying specific individuals of an ...

  • mass notification system (MNS)

    A mass notification system is a platform that sends one-way messages to inform employees and the public of an emergency.

SearchStorage

  • open source storage

    Open source storage is data storage software developed in a public, collaborative manner that permits the free use, distribution ...

  • CompactFlash card (CF card)

    A CompactFlash card (CF card) is a memory card format developed by SanDisk in 1994 that uses flash memory technology to store ...

  • email archiving

    Email archiving (also spelled e-mail archiving) is a systematic approach to saving and protecting the data contained in email ...

SearchSolidStateStorage

  • RRAM or ReRAM (resistive RAM)

    RRAM or ReRAM (resistive random access memory) is a form of nonvolatile storage that operates by changing the resistance of a ...

  • JEDEC

    JEDEC is a global industry group that develops open standards for microelectronics.

  • M.2 SSD

    An M.2 SSD is a solid-state drive (SSD) that conforms to a computer industry specification written for internally mounted storage...

SearchCloudStorage

  • RESTful API

    A RESTful application program interface breaks down a transaction to create a series of small modules, each of which addresses an...

  • cloud storage infrastructure

    Cloud storage infrastructure is the hardware and software framework that supports the computing requirements of a private or ...

  • Zadara VPSA and ZIOS

    Zadara Storage provides block, file or object storage with varying levels of compute and capacity through its ZIOS and VPSA ...

Close