Automated Advice is Not as Objective as You Think

There has been a wide trend in recent years to use automated investment advice as it is seen to be more objective, cheaper and readily available when needed; though some of that is certainly true the objectivity part is not as straightforward; algorithms are set up by humans and so they will come with some of the same biases as a human financial adviser; if investors accept automated advice as truthful then they will most likely not do the required amount of research to ensure they are making the right investment decisions; there are steps that can be taken, lawmakers can force robo advisors to disclose potential biases and second opinions should be encouraged regardless of advice; as we become more automated next practices still should be heeded, especially when it comes to our financial lives. Source.

Todd is the Chief Product Officer of LendIt Fintech.

He is the host of PitchIt: the fintech startups podcast, a weekly interview show featuring emerging fintech founders and leading venture capitalists.

He is responsible for leading the content team which covers fintech through daily & weekly email newsletters, editorial, virtual events, and in-person conferences.

He has been covering fintech, banking, and venture capital for more than 15 years, including speaking regularly at industry events.

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