Robo-Advisory Firms Offer Expert Financial Advice


Robo-advisory startups have made a plunge in the financial services industry, offering unique tools that involve minimal human interaction.

These services provide a variety of tools such as financial advice and portfolio management. 

How It Works

Using unique algorithms and small fees, Robo-advisors are able to solve different financial needs depending on the consumer’s target.

“Once your funds are invested, on an ongoing basis, the software automatically makes changes to the investments to align your portfolio back to a target allocation.” The Balance reported. 

Let’s dive into a few companies that have been built to give customized, digital financial advice. 


At our latest Transformational DET and CISO Assembly, Gahl Berkooz PH.D. Chief Data and Analytics Officer from Acorns was an attendee and lead a custom workshop session, offering informative information about personalized financial advice.

Acorns have developed a smartphone app for use by the mobile customer. Users put in their personal information and receive customized guidance to further their financial standing. 

“Using a system they call “round-ups,” Acorns monitors your bank account and automatically invests the change from your daily purchases. For example, if you buy a coffee for $2.75, Acorns will round up to $3.00 and automatically invest $.25.” According to policygenius. 

With a fee of $1 dollar a month, Acorns has access to customers bank accounts and makes investment decisions based on account balances and transactions.

The app helps customers looking to save money and make beneficial investments.

Acorns help you make use of spare change that typically goes unused.


Betterment is an advisory service that targets long-term investments, managing customers using the modern portfolio theory.

The modern portfolio theory allows risk-averse investors to create portfolios that will result in the most effective return on investment.

Betterment leveraged this theory by creating its own portfolios for customers to use through automation and other strategies that will ultimately result in a maximum return on investment.

“Betterment is designed to help you keep those investor returns that can be (and often are) gobbled up by excessive fees, poor investor behavior (i.e. market timing or undiversified risk), and other inefficiencies like poor tax strategies.” According to 

Betterment has $9 billion in assets under management, making it the largest independent online advisory firm using this sort of technology.


Blooom is a Robo that specializes in helping customers with retirement plans.

By using an automated money management service, Blooom targets customers looking to receive define-contribution retirement plans.

By placing restrictions on the money that can be withdrawn, this Robo forces you to put money aside each year.

 “It (Blooom) offers a very easy to understand assessment of your investments. And if you use the service to manage your 401k, it will invest your monthly contributions and rebalance your portfolio as needed.” Forbes reported. 

Schwab Intelligent Portfolios

Schwab Intelligent Portfolios is a Robo-advisor platform, branched from the bank and brokerage firm, The Charles Schwab Corporation.

It creates custom portfolios based on results from a questionnaire that customers complete, offering unique advice for financials.

The portfolios that are created are formed around risk-tolerant goals for the customer and offer automatic rebalancing and tax loss harvesting for large accounts.

“With Schwab Intelligent Portfolios, you can invest for retirement, save for a vacation, or work to build long-term wealth. You can also set and adjust a target withdrawal amount to help you get a sustainable income stream.” According to Charles Schwab and Co. 


The Robo-advisory firms that have swept the financial industry provide benefits such as:

  1. Low fees
  2. Efficiency using algorithms
  3. Accessible advice at all times
  4. Unique to the customer

Robo-advisory firms are predicted to only grow as technology develops, affecting the way financial services are carried out and bridging the divide between physical and digital financial advice.

With technology taking away the need for human interaction, financial business leaders are forced to shift their priorities to keep up with the digital transformation.


Application to attend FSI Transformation Assembly taking place September 14-15, 2017 at Four Seasons Resort in Palm Beach, FL is now open.

Robo-advisory firms are changing the way the Financial Service Industry operates by shifting customer’s preferences towards digital platforms to gain access to financial needs. With the option of technology becoming more demanding for customers, the digital and physical world are bridged to result in increased customer engagement.

Be a part of the conversation and ride the digital wave, by attending FSI Transformation Assembly to learn about all the digital transformation trends that are happening in your industry.

Learn from Keynote Speaker Scott Dillon, EVP, CTO and Head of Technology Infrastructure Services at Wells Fargo and Company, who will offer expert advice about availability, security, and global interconnectivity. These skills are used to manage and operate more than 70 million customers who interact 12 billion times a year in person through the company’s 9,000 stores and 12,000 ATMs, on the phone, or online at

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C-level IT leaders in the financial services and insurance sectors are dealing with many challenges as digital transformation becomes an imperative. Understanding not only the convergence of Mobile, Social, and Cloud but also the possible implications of Artificial Intelligence, Machine Learning and Blockchain is vital to stay ahead of the competition.

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