Robo-advice: Automated? Yes. Intelligent? Not so much.

Extreme divergences between platforms and investor profiles in terms of asset allocation and expected returns reveal significant deficiencies in the suitability of the algorithms’ investment recommendations.

From virtual meetings and parties to shopping and dating online, people have en masse moved countless aspects of their lives into the virtual sphere due to restrictions imposed by the ongoing global Covid-19 pandemic. Financial matters and investments are no different in this regard, as illustrated by a marked increase in retail participation in financial markets and a shift over the last 20 months towards FinTech investment solutions such as Robo Advisors and online brokerage platforms.