Robo Advisor: Emergence, Present Status, and Future

Abstract

Technological advancements have changed how we live, and they have impacted our daily life in a big way. We have been living in web 2.0 since early 2000 (O’Reilly, 2009). Web 2.0 is characterized by user-generated content, social network, cloud, etc., which gives rise to a vast amount of data. The field of data analytics emerged out of the data generated daily. Web 2.0 also comprises various technology-driven mobile applications such as Tiktok, WhatsApp, and Instagram. Today, we refer to web 3.0, which is expected to transform individuals, society, business, and government. This transformation is revolutionary and disruptive due to the inherent nature of being open, decentralized, trustless, and incorporating artificial intelligence and machine learning. Some of the cryptocurrencies are part of Web 2.0 and 3.0. Those started during 2.0 have become popular in recent times and have adopted definite characteristics of web 3.0. Technological advancement has touched the financial sector momentously and has given rise to a new era known as, Fintech, which is considered a separate segment. Most of the start-ups in India are coming up in this segment. There are many niche areas within banking and finance, which give rise and opportunity to these start-ups, and Robo advisory is one such area.