Robo-Advisory: Opportunities and Risks for the Future of Financial Advisory

  • Dominik JungEmail author
  • Florian Glaser
  • Willi Köpplin
Part of the Contributions to Management Science book series (MANAGEMENT SC.)


Without professional advisors, taking financial risks is a challenging task for most private households (retail investors). Across countries, digital financial advisory services, in particularly robo-advisors, are becoming more popular in retail and private banking. These tools support their users in financial decision-making, like risk-measurement, portfolio selection, or rebalancing. Recent studies suggest that in the long-term, they could supplement human financial advisory. This work illustrates the key concepts of this (r)evolution, and discusses strengths, weaknesses, opportunities and risks of robo-advisory. The results suggest that robo-advisors have a huge potential to shape the future of the financial advisory industry, despite the fact that there is still a lot of potential yet to be exploited.


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© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Karlsruhe Institute of Technology (KIT)KarlsruheGermany

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