Garnet Capital Advisors Blog

Robo advice is offering value to clients while giving banks another source to potentially increase profits.

Today's consumer is accustomed to accessing just about every type of information, service and product via technology. They've become completely dependent on digital devices for just about every aspect of life, including their banking.

According to Accenture Consulting's 2016 North America consumer Digital Banking Survey, an increasing number of consumers are more apt to tapping into the latest digital technology to handle their money, and are even willing to provide their personal data to do so.

Many are even going so far as to welcome robo advice for their banking. In fact, the survey shows that 46 percent of consumers are open to seeking financial advice using robo technology at some point in the future.

The Growth of Robo Technology in the Banking Industry

Consumers want and expect a real deal of value when they do their banking, and robo technology is able to provide them with just that. Of course, saving money through discounts and other incentives remains of top priority when it comes to what consumers perceive as value with their banks. But convenience also offers value, and robo technology is providing consumers with such.

While consumers once had to depend on face-to-face interaction with bank tellers or telephone conversations with banking representatives, these days consumers have the convenience of getting the advice and information they seek via their computer screen.

Banks have traditionally been somewhat slow to jump on the technological bandwagon, but they've certainly come around. With an increasing number of bankers embracing robo advice technology, this segment of the industry is undergoing rapid transformation. Wells Fargo, US Bancorp, and Bank of America are just a few of the big players in the industry that have already made plans to introduce robo advice in the very near future.


Robo technology is growing at a rapid pace, and is expected to grow into a $7 trillion industry over the next decade.

According to research from Deloitte, robos are anticipated to grow into a $7 trillion industry over the next few years.

How Robo Technology is Adding Value on the Banking Front

Robo advisors offer digital, automated advice without the need for human intervention or interaction. Consumers with less complex financial needs will find computer-generated advice attractive because it can provide interactions about their banking that are simple, convenient, and relevant. Not only that, the fees associated with robo advice are a fraction of what personal financial advisors would typically charge.

Convenience, ease of use and money savings translate into a high degree of value according to consumers who make use of such innovative technology.

While it may come as no surprise that young Millennials are attracted to the ease and convenience of robo advice, such technology is also piquing the interest of the older, wealthier demographic with assets between the $250,000 and $3 million range. In addition, young professionals are also opening up to such technology.

Banks strive to develop relationships with these demographics, as they are typically the ones that generate the most profit.

Robo advice can also provide banks with a means to test the investment services waters. It can give banks a way to gauge interest in an investment program, and identify how much of their client base would be open to having their investment portfolios managed through the institution.

If anything, robo advice is serving a portion of banking clients that are seeking a new, more innovative and convenient means of obtaining financial information.

Partnering With a Loan Sale Advisor While Implementing Robo Technology

It appears that banks can potentially reap great financial rewards by embracing robo technology for their clients. But one of the challenges that bankers currently face is finding the right balance between offering automated versus in-person options. Many banks are seeking out ways to offer the right combination of financial service to their clients.

In the meantime, it's important for banks and other financial institutions adopting this type of technology to continue to keep a close watch on their loan portfolios. In doing so, a seasoned loan sale advisor is mandatory.

Garnet Capital has the experience and skill set to ensure each and every transaction is a sound one, and that loan portfolios are properly balanced. Register for our online portfolio auction system today and discover more about our comprehensive loan sale advisory services.