What is the difference between robo advice, digital advice, and automated advice?

Robo advice, digital advice and automated advice are the same, as per the Australian regulatory authority ASIC. These terms refer to the service of providing financial advice using algorithms and technology and without the direct involvement of a human adviser during the act of providing that financial advice.

Digital advice can comprise ‘general financial advice’ or ‘personal financial advice’, and range from advice that is narrow in scope (that is, advice about portfolio construction) to a comprehensive financial plan.

Hybrid financial advice

Financial advice models that incorporate elements of both digital advice and non-digital advice models can be termed as hybrid financial advice models. Some firms provide hybrid financial advice instead of digital-only advice.

Different narratives that are not sticking

Digital advice is a fast-evolving space and various B2C, B2B and B2B2C business models get experimented. In this context, some people articulate various narratives around the difference between robo advice, digital advice, and automated advice. However, we at QuietGrowth consider that the terms robo advice, digital advice and automated advice mean the same. Among these, we prefer the term digital advice.

Refer to our Robo advice for your wealth management page for more information.

Also read the answers to the related questions:

• Should a firm that does not offer ‘personal financial advice’ be called a robo advisor?
• Can a firm that sells investment portfolios online be called a robo-adviser?
• Does a robo adviser give personal financial advice?
• What are the terms that are used commonly to describe your service?

Additionally, you can consider to read the following knowledge resource:

• Conventionalisation of the new term ‘robo adviser’

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