It's April - a new financial year; a time when terms like 'higher taxable income,' 'investments,' and 'Sections 80C, 80D, 80E,' keep buzzing in my head. Now, although tax planning is certainly on my cards, the 'when, where, and how' of investing is still unclear, thus driving me to seek financial advice. To avoid the hassles associated with traditional financial advisors, I initially thought of using automated advisors that are popularly known as robo-advisors; but, then I realized that these models will not provide personalized advice in important matters. That's when I found the perfect answer to my investment woes - 'bionic-advisors.' Yes, you read it right; not 'robo,' but 'bionic'.
'Bionic-advisors' make use of technology to enhance client relationships. They use a specialized, automated advice software to create reports that are used as a base for all client interactions, which happen either via web portals or mobile devices. Additionally, these advisors use automation in various areas, such as creating customized client reports, paperless onboarding processes, and rationalizing KYC processes. As a result, bionic-advisors save time and increase efficiency, allowing them to focus better on client interactions. Although bionic-advisors are very similar to robo-advisors -- especially in terms of cost effectiveness and transparency -- they still score over robo-advisors, thanks to the human element in the bionic model.
Individuals like me, who have certain financial goals, but still require personalized advice; will prefer bionic-advisors. They provide automated portfolios and reports that investors can use at any point of time and, most importantly, they give us access to interact with financial advisors when we feel the need for them. Interestingly, more than low-net-worth individuals, it is the high-net-worth individuals (HNIs) who seem to benefit the most from bionic-advisors. Most HNIs want their preferences to be incorporated into their huge portfolios, and demand customized financial advice for their complex investments. Consequently, they prefer a bionic mix over other advisory models.
Off late, 'financial advice' has been going beyond the realm of investing and instead, has taken the shape of financial planning. The mere presence of automated advisors will not completely quench the evolving financial needs of today's investors - a fact that only strengthens the case for bionic-advisors. Firms like AdviseSure are already making headlines. Launched in 2015 in India, AdviceSure is a bionic-advisor, providing advisory services across multiple product categories, such as mutual funds, capital market, shares and stocks, systematic investment plans (SIPs), tax-saving schemes, national pension system (NPS), etc. And now, they are in talks with venture capitalists to raise funds worth US$5-8 million, which will be used for marketing their service and improving their technology in the future.
The bionic-advisory model is a lot like hot chocolate fudge sundae. Everybody loves vanilla ice cream, just as they love chocolate sauce; but it's when the two come together that the final product becomes truly delightful. The bionic-advisory model's USP is that it integrates automation with human interaction, thus ensuring the best advisory solutions for investors. In the end, it is the measure of delight that bionic-advisors will offer their investors, which will decide the model's sustainability in the long run.