Ndege, founder and CEO of Pocket Risk, is predicting a collapse in the world of roboadvisors.
Many financial advice providers are purchasing roboadvisors or building their own roboadvisor-like tools in hopes of rapidly acquiring and onboarding new clients, a tactic that Ndege says is unlikely to succeed.
“Investment management is already being commoditized, advisors are struggling to establish differentiation, and they’re doing it in the wrong way,” says Ndege. “Why should someone work with one advisor rather than another based on technology or a risk tolerance questionnaire? This part of the process is not a prospecting element.