The Future of Robo-Advisors in Management

Abstract

This chapter examines how financial advice is evolving and how blockchain technology and machine learning algorithms are being integrated into Robo-advisory platforms. Based on research highlighting the benefits of blockchain in portfolio control, it first discusses how blockchain technology can be used to improve security, transparency and performance in automated advisory services. He then explores how machine learning techniques can be used to improve the overall performance of Robo-advisors, predict user decisions and enable adaptive learning. Numerous studies show how machine learning algorithms are overhauling traditional strategies by enabling personalized and responsive fund steering. In addition, the regulatory environment of Robo-advisors can be tested. Compliance issues and applicable solutions for client protection and platform rebalancing are addressed. The chapter concludes by highlighting the need for an ethical and regulatory framework to accompany technological development and promote responsible and reliable practices in the financial advisory industry.