It seems the term is here to stay.
The word robo-adviser has been added to the Oxford dictionary, as automated technology becomes increasingly popular.
The dictionary defines the noun as “an online application that provides automated financial guidance and services.”
Robo-advice in the UK has been expanding in the last year, with numerous platforms and banks launching automated investment services. Independent financial advisers and wealth managers are also looking at ways to add some type of wealth technology through white label companies.
The Financial Conduct Authority is also supportive of the new technology and launched a robo-advice unit in June 2016. The purpose of the unit is to provide regulatory feedback to automated advice and discretionary investment management platforms.
But while the service is growing in popularity, the term is not.
Many in the wealth tech sector do not like the term robo-advice. The term was first used in the US, where advice is regulated differently. In Europe, many automated platforms do not give advice, which is why many think the term is a bit misleading. Others think the term doesn’t accurately convey the complexity of automation, which often uses algorithms and machine learning to readjust portfolios on a daily basis.
Regardless, it’s the term that seems to have stuck… for now.
This article first appeared on www.roboadvicenews.com