Three Considerations to Guide Your Search for a Robo Solution

Given the growing prominence of robo advisor platforms as an investment management tool, it’s prudent to think about adopting a robo strategy. Moving to the right robo solution will not only augment your advisor experience but also streamline your operations and enable you to profitably service a new class of investors.
As your firm compares the different robos, how will you know which platform is right for your business?

Here are a few considerations that we believe should be top of mind as you weigh the options:

  1. What is your long-term business strategy? Consider what information your clients want, and whether or not your client relationships are strong enough, and your value proposition is differentiated enough, to retain clients over time.
  2. How will a robo advisor fit into your practice? With the DoL Fiduciary Rule on the horizon, it’s wise to carefully scrutinize how a robo will fit into your practice. For example, if the robo has a different outlook on emerging markets than you do, this will lead to differences in the asset allocations recommended to each client. Will you be able to prove that you acted in the best interest of the client if this is the case?
  3. Does the platform integrate effectively with your other systems? Integration is the Holy Grail for every solution. You must have a clear understanding of the robo’s ability to integrate into other systems, custodial as well as other third party apps that advisors may incorporate into their practices.

For more information, download the full article, “5 Questions Most Advisors Aren’t Asking When Selecting a Robo,” or register for the upcoming webinar, “The Robo-Advice Solution: Creating a Fully-Integrated Platform,” featuring Will Trout, Senior Analyst at Celent, Brendan McConnell, COO at Brinker Capital, and Rob Klapprodt, President of Vestmark.


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