Full Description
This Open Access book explores the rise of robo-advisory within the broader FinTech revolution, tracing its evolution from traditional human advisors to AI-driven platforms that democratize financial services. Robo-advisory technologies are part of a rapidly evolving financial landscape shaped by digitalization, disintermediation, and changing client expectations. This work examines the drivers behind this shift, including advancements in AI and data analytics, evolving investor demands for personalization and accessibility, and the cost and scalability pressures facing financial institutions. The book differentiates rule-based from AI-powered systems, highlighting how modern robo-advisors increasingly leverage machine learning, behavioural insights, and alternative data to offer dynamic and adaptive services. Emerging trends such as hybrid advisory models, behavioural nudges, ethical challenges surrounding algorithmic transparency, and inclusivity concerns are also addressed. Moreover, this work maps out key players and market trends, emphasizing regional variations, consolidation patterns, and niche market opportunities. A novel framework of six AI-driven business models is introduced to explain how robo-advisory is strategically deployed across incumbent and disruptive financial organizations. Ultimately, robo-advisory technologies serve as a lens to understand the future trajectory of financial services where AI, automation, and behavioural design converge to reshape how individuals engage with money, risk, and long-term financial planning.
Contents
Chapter 1:The Rise of Robo-Advisory in FinTech.- Chapter 2:Current Trends for Robo-Advisors.- Chapter 3:Behavioral Biases in Investment Decisions.-Chapter 4: AI in Personalized Financial Decision-Making.- Chapter 5:Building Trust in Financial Robo-Advisory and Overcoming Ethical Challenges.- Chapter 6:A Theory of Investment Simplification and an Experiment with AI Large Language Models.- Chapter 7: Identifying and Ranking the Eight Risks of AI for Each of the Six Main AI-Focused FinTech Business Models.- Chapter 8:Regulatory and Compliance Issues in AI-Driven Financial Services.- chapter 9:Robo-Advisory and Auditing: Internal and External Controls.- Chapter 10:Cybersecurity and Fraud Risks in Robo-Advisory.- Chapter 11: The Future and Prospects of Fraud Detection through AI and Robo-Advisory._ Chapter 12: Enhanced Cryptocurrency Volatility Forecasting via Local Linear Forests.- Chapter 13: Fee Structure and Order Flow Informativeness in the Cryptocurrency Market.- Chapter 14:Quantum Computing and the Next Generation of Robo-Advisory.- Chapter 15:Sustainable Investing and the Role of AI-Driven Robo-Advisors.- Chapter 16: Robo-Advisory Under Review: The Market's Verdict.
