Citi says robo-advisers won't take investment managers place

Robots Of Brixton

It's OK, Charles Schwab and BlackRock: Robo-advisers won't be taking away your high-net-worth clients.

Bloomberg News reports that at least, that's what Citigroup is telling clients in its recent fintech report, which has already been garnering headlines.

"We see the advent of robo-advice as an example of automation improving the productivity of traditional investment advisers, and not a situation where there is significant risk of job substitution," Citi analysts led by Ronit Ghose wrote in their report. "Higher net worth or more sophisticated investors will, in our view, always demand face-to-face advice."

The note comes after Betterment, one of the robo-advisers referred to in the report as a first-mover in this industry, doubled its total funding to $205m and boosted its valuation to $700m. Online financial advisers such as Betterment, Wealthfront, and Personal Capital seek to use new technology and algorithms to offer better returns than traditional advisers that have long dominated the space.

To access the complete Bloomberg News article hit the link below:

Citi: Robo-Advisers Will Never Take the Place of Traditional Investment Managers

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