The growing role of FinTech and robo-advisors

This chapter provides a summary of key findings from the literature on the growing role of FinTech and robo-advisors in the personal finance space. The chapter describes the various types of FinTech and robo-advice and provides a historical review of the development of FinTech. It outlines the benefits of FinTech and robo-advice relating to accessibility, compliance, efficiencies, and cost savings while also exploring some of the challenges in terms of consumer protection, cyber-security, and data privacy. The chapter discusses a range of tools and techniques being used by practitioners along with how FinTech and robo-advice have disrupted the financial advice market and the impact on the traditional role of the financial advisor. The chapter also discusses the main issues facing researchers and policymakers in the areas of FinTech and robo-advice during a period of rapid change. The future direction of FinTech is discussed, including the increased sophistication of machine learning and artificial intelligence (AI) and how continued disruption will influence customer behavior, business models, and the long-term structure of the financial services market.