The Impacts of the Development of the Robo Advisor onBanking Industry

• Main Authors: Yang, Hui-Yuan, 楊惠媛
• Other Authors: Kung, Shang-Chih
• Format: Others
• Language: zh-TW
• Published: 2018
• Online Access: http://ndltd.ncl.edu.tw/handle/rupd6q

碩士 === 輔仁大學 === 科技管理學程碩士在職專班 === 106 === As the world move toward FinTech Bank 4.0 and the advancement of information technology, many technology companies combine the technology with financial management in providing informative financial platform service. Therefore, the rise of the robot finance service platform becomes a direct competitor in financial management in the industry. Some of US financial technology companies combine with big data and professional investment knowledge has derived smart financial management techniques targeting customer from lower end of middle class which is rapidly emerged and developed in the States. The reason for raise of “Finance robot” is traditional finance companies utilize high-cost operation method in providing consulting service to limited number of customers. The smart finance management industry has noticed the needs of the long-tailed customers. Therefore, provides service with lower operational cost and enable broader customer contacts which directly act on the inefficient parts IV of the traditional business model. As a result, rapid development of “Finance robot” service is emerged. There are three distinct characteristics to financial robot. First, consumer can use the financial robot by himself, without the need for others to participate or only needs limited participation. Secondly, algorithm can be based on the information input by the investor and the result is calculated. Lastly, the financial robot's output is a certain financial proposal. Financial robots can be divided into two categories according to the types of services they provided. The first category is used as a traditional securities investment manager assistant tool to help the industry in providing precise services to discretionary and wealth management clients. It is called the “finance business use” tool; Classes are provided directly to investors for use primarily as“investors use type”tools. If the service function is provided, it can be divided into two types:“advisory type”and“asset management type”. With the algorithm's financial management services, the financial robots are fully automated and serve the same purpose as the current program trading of stocks in the world. By using the algorithm to search for features, and then learning through historical data, it has a good evolutionary ability, and uses the fear of investors to react with hope to evaluate the reasonable range of stocks. The timing of using the financial robot algorithm's trading timing is better, the bearish trend is obviously better than the broader market, the bullish trend is close to the market buying strategy, and the overall investment performance is better than the broader market. This is also the necessity of the existence of financial robots is the operating performance command. V Although wealth management robots can meet the long-tailed customers with low asset capabilities and reshape the customer experience of financial services, they should still pay attention to the possible replacement of part of the wealth management industry's wealth management commissioners in the development of financial robots, resulting in a large number of unemployment. When Japan’s Mitsubishi UFJ, Royal Bank of Scotland, Deutsche Bank, Credit Suisse and Citibank all announced the abolition of their employees and the closing of branches and outlets, it is expected that European and American banks will lay off 30% of their employees and reach 1.7 million in the next decade. Under the development of financial robots, government regulators and financial institutions must consider the impact on the wealth management industry. Wealth management business fee income accounts for a considerable proportion of bank revenues. Wealth management robots may have great misgivings about wealth management revenues at a low fee, which will at least bring ignorance to traditional asset management with great changes.