Artificial Intelligence (and Machine Learning)
Roboadvisors: Balancing Automation and Personalization in Financial Planning

Roboadvisors: Balancing Automation and Personalization in Financial Planning

Driven by advancements in technology and evolving customer expectations, Robo-advisors in the banking sector are one of the most notable disruptions. They are intelligent digital platforms that offer automated investment advice and portfolio management services. As these digital advisors gain traction, they are reshaping the way individuals and institutions engage with financial planning and investment strategies.

Robo-advisors are digital platforms that leverage algorithms to provide automated investment advice and manage portfolios based on an investor’s profile data, such as age, risk tolerance, and investment objectives. Such services have played a significant role in democratizing the financial industry, facilitating greater accessibility to trading for younger generations through the introduction of low-cost fee structures. Robo-advisors have not only gained substantial popularity but are also experiencing rapid growth, with projected market estimates for 2025 reaching an impressive $9,255 billion.

While automation brings efficiency and convenience, it raises questions about the role of human advisors and the need for personalized guidance. 


  • Lower Margin of Error: Minimizes human error risk
  • Cost-effective: Typically lower fees than traditional financial advisors.
  • Ease of Use: Opening an account with a robo-advisor is straightforward
  • Convenience: 24/7 access
  • Hands-Off Management: Ongoing management of your portfolio (rebalancing and other necessary adjustments)


  • Limited Flexibility: May not support complex investment strategies beyond their algorithms
  • No Human Contact: Can be a drawback for those seeking personalized financial guidance
  • Not Suitable for Everyone: Robo-advisors are not a good fit for every situation or every investor, and they may not be suitable for those who want to pick specific investments or individual stocks.

Use Case

In a non-open banking scenario, managing finances through a money manager app requires users to manually interact with each of their banks, which can be time-consuming. However, with an open banking app, the process is simplified. Users grant permission to the app to access their banking data through open banking APIs, allowing the app to consolidate information from all their accounts into a single, easily accessible interface. This enables users to effortlessly view transaction history, account balances, and spending with just a few clicks and in one single app.