http://mishtalk.com/2016/03/17/rbs-...-fires-hundreds-real-advisor-requires-250000/ If you don't have a 1/4 million to invest, RBS will only provide you with it's automated advice system. Hundreds of investment professionals will lose their jobs this week, replaced with powerful market software. This is just one tick on the trend towards automation. Thoughts?
Well I guess we cannot really be too surprised by a move like this at this point. After all, we have all seen it in the movies and we hear about it in the media, where the computers start taking all the jobs. There is some truth to it though, of course, and we can see it here. I feel bad for all the people who will be losing their jobs, and I hope that they can bounce back.
To an extent that has been happening when you send in a query online. They can only afford to pay for people that are serious investors, but it's not a good move. I know in my area they cut down on financial advisers to cover a larger area. Quite simply people don't need as much advice as there are lots of options for investing, but the places that do offer advice will inspire more confidence and get more business.
Maybe they were too hasty to replace the advisors with computer programs. I doubt investors will get all the answers they need since AI at the present isn't all that good. But this is just the beginning . . . more and more people are going to lose their jobs in the near future. http://www.telegraph.co.uk/finance/...s-warns-Bank-of-Englands-chief-economist.html If you have a job better start investing in some business before it's too late.
My logic states that the more options available the more advice people who are not familiar with the subject will need. Does anyone have any experience on how this automated system works? Does it just suggest investments based on your desired risk level, current ownings, sector balance etc?
While it is no longer a surprising news and the bank will definitely save on manpower salaries, I think this move is not really the best thing to do. Investors still need man-to-man advises regarding their investment options and decisions. Also thinking about the presence of many online criminals and hackers out there makes me think twice about this kind of move. What if their system gets hacked and the AI advisors would then be greatly affected by this? Just a thought.
If a bank somehow gets hacked then I think bad advice from robotic investment advisors would be the least of their worries.
I think it's just another indication of the way that the world is going. Technology is slowly taking over in a number of ways, and this is just one of them. Businesses these days are more focused on saving money than on doing what's best for their customers, and while computer systems might be more efficient for them, for the customers I doubt it's a good thing.
