ABSTRACT
Robo advice, the automated provision of financial advice without human intervention, holds the promise of cheap, convenient and fast investment services for consumers – free from human error or bias. However, retail investors have limited capacity to assess the soundness of such advice, and are prone to make hasty, unverified investment decisions. Moreover, financial advice based on rough and broad investor classifications may fail to take into account the individual preferences and needs of the investor. On a more general scale, robo advice may be a source of new systemic risk.
