Robo Advisor What Why Where and Who a class of financial adviser that provide financial advice or portfolio management online with moderate to minimal human intervention. They provide digital financial advice based on mathematical rules or algorithms. These algorithms are executed by software and thus financial advice do not require a human advisor. The software utilizes its algorithms to automatically allocate, manage and optimize clients' assets. What Taken from en.wikipedia.org For Fund Managers: it reduces overhead costs, in particular cost of human resources and securities research It might put the company in a better position in the industry as the company can offer a lower fees to customers For Customers: Lower fees to pay Lower size of investment They can monitor their investment 24/7 Why Where and Who Mostly in the countries where: The information of the market is available efficiently Market cap is very large Among others: USA: Vanguard, Charles Schwab, Betterment, Wealthfront, Personal Capital UK: Nutmeg Canada: Wealthsimple

Robo Advisor Pros Cons Low Fees Easy to transact Can be monitored 24/7 Easy access for lower networth Low minimum balance Cons It is not personalized No face to face meeting Can only be implemented in an efficient market

Robo Advisor – How It Works Customer fills KYC, Customers Profile, Financial Goals, Monthly Income and Expenses, tenor of investment in Robo provider website The provider analyse (automatically) the customers profile and investment goals, and propose asset allocation to customer Upon customer’s confirmation re the asset allocation, the Robo provider asks the customer to open a dedicated bank account and investment account Start investing

Robo Advisor in Indonesia?