Link: http://www.bbc.com/news/business-41159944
Date: 8 September 2017
Media: BBC News
- What happened?
The news “Should you let a 'robot' manage your retirement savings?” talks about efficiency by replacing people with robots in the financial sector. There are contradictions in this issue, since 68% of people prefer the computer system to plan their retirement since it is cheaper than a human advice. Another reason is many people feel uncomfortable talking about their finances.
On the other hand there will be a significant increase in the use of these technologies in the USA and Chinese.
Finally, this new technology will allow manage adequately the retirement savings, because a lot of people could be spending their retirements in poverty, and Governments are concerned that this might then place an unsustainable burden on welfare systems.
On the other hand there will be a significant increase in the use of these technologies in the USA and Chinese.
Finally, this new technology will allow manage adequately the retirement savings, because a lot of people could be spending their retirements in poverty, and Governments are concerned that this might then place an unsustainable burden on welfare systems.
- Whom and where it affects?
For the time being, the robo-advice affects to the small investor trying to save for a comfortable retirement and also the banks for the new way to work in the finances.
Where the most noticeable change is in the USA and China, that is expected to increase the technology advice, and also in UK, where are arguing about this issue.
- What sort of public ir private institutions are involved?
Wealth Wizards, it is a company that through the best software engineering is dedicated to creating a financial advisory platform, based in United Kingdom.
And also, some entities are using this tool, for example, John Perks, managing director of life and pensions at UK insurer LV, which launched its Retirement Wizard robo-advice service two years ago.
And also, some entities are using this tool, for example, John Perks, managing director of life and pensions at UK insurer LV, which launched its Retirement Wizard robo-advice service two years ago.
- Why is it important for Banking and Finance?
We choose this news because it talks about interesting points as:
On one hand, a large proportion of the population haven’t enough financial literacy so they need financial advice from experts. What it is discussed here is if it is better being advised by robots or by humans.
On the other hand, it has to be mentioned that with this new method banks are saving in personnel costs, because they do not need to hire so many employees to advise clients.
- What do you think will be the consequences in the foreseeable future?
We think that
advices will not be on the part of humans, because, in the future,
robots will control our savings in a cheaper, efficient, safe and
reasonable way. Finally, this change from person to robot, will give banks greater benefits for banks by saving personnel.
Key words: Algorithms, Asset allocation plan, Portfolios, Investment, Risk, Robo-adviser, Automated financial.
In my opinion, the increase in the use of robots in the world is something extraordinary, and it is a technological development that should be exploited, but that these robots take away the job of a person, I do not think it will help improve the economy. The robot should be used as a support for human work. In the world of finance, I believe that financial advice should be carried out by human financial experts, although later that work is supported by the use of the robot. I think it's a little crazy that a robot without the ability to reason manages my savings for retirement, because a robot can not be perfect either, it can be damaged, broken, etc. In addition, it should be noted that a robot can be manipulated to work badly.
ReplyDeleteThis is a very interesting topic that can generate different points of view and opinions.
ReplyDeleteIf I had to position myself for or against robotic advice, I would be in favor of this initiative because in general, if you are not looking for a very complicated pension plan and with complex tax planning, a robot could be of great use to you, besides you would not have talk face to face with another person, or feel judged by it.
The problems that I detect to this system are, in the first place, many employees would be forced to leave their jobs, and second, a very complex and structured pension plan can not be advised by artificial intelligence.