Dublin Core
Title
AI, FinTech, and the Future of Robo-Advisory: Risk Management and Ethical Considerations
Creator
Narmin Nahidi, Alex Zarifis
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, behavioral insights, and alternative data to offer dynamic and adaptive services. Emerging trends such as hybrid advisory models, behavioral 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 behavioral design converge to reshape how individuals engage with money, risk, and long-term financial planning.
The book differentiates rule-based from AI-powered systems, highlighting how modern robo-advisors increasingly leverage machine learning, behavioral insights, and alternative data to offer dynamic and adaptive services. Emerging trends such as hybrid advisory models, behavioral 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 behavioral design converge to reshape how individuals engage with money, risk, and long-term financial planning.
Subject
Financial Technology and Innovation
Publisher
Springer
Date
2026
Format
PDF
Rights
This work is licensed under a Creative Commons Attribution 4.0 International License
Language
English
Type
Text