THE NEW TREND IN DIGITAL ASSET MANAGEMENT: ROBO-ADVISORS

Abstract

Purpose- The robo-advisors used by investors looking for financial advice are web-based platforms that utilize algorithms to automatically create and manage portfolios. They recommend portfolios according to the personal preferences of the investors, which are determined by online surveys. Digital financial advice is a new trend in Turkey, and this study provides an overview of the changing landscape of digital asset management and financial advice. It aims to examine the market situation of robo-advisors in Turkey. Methodology- A SWOT analysis is being conducted to determine the strengths, weaknesses, opportunities and threats of these new digital financial advisors. Findings- The analysis shows that robo-advisors are among the most noticeable developments in digital asset and wealth management. Low fee structure, and low minimum investment requirement are some of the strengths and standardization, quick and easy introduction for young people due to their propensity for technology are some of the opportunities that robo-advisors have, and these positive aspects show why some of the industry experts believe that it is obvious robo-advisors cause difficulties for those who are traditional and refuse to change over time. Conclusion- Robo-advisors, were recently introduced in Turkey and their number is still limited. The number of these consultants deployed worldwide is very high and is also growing in Turkey, and the true potential, strengths and weaknesses of these advisors in Turkey will be better understood if they are deployed on a large scale.

Keywords

• Digitalization
• asset management
• robo-advisors
• traditional advisors
• automated ınvestments

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