ROBO-ADVISOR ECONOMICS

The debate of whether robo-advisors can be a sustainable business raises a need for an in-depth analysis of the survivability and the long-term profitability of this service. The objective of this paper is to provide the author’s position on the short to mid-term prospects of robo-advisors, an understanding of the turn of fortune created from the evolutionary business models, and the foreseeable challenges in the wealth management and financial advisory sector. The author’s position was formulated with reference to the following papers: "Hungry Robo-Advisors Are Eyeing Wealth Management Assets", published in 2015 and "Robo-Advisor Upgrade! Installing a Program for Profitability:Digital Advice Raises Profits for Investment Services Industry", published in 2018.