ROBO ADVISORY Artificial intelligence applied to finance

Consultancy advise was not highly regulated until recent times, Artificial Intelligence hugely affected the financial sector helping to create a new trend that experience large growth since 2008: Robo-Advisory financial consultancy. Disrupting the traditional process, Robo-Advisors have multiple advantages for both providers and users. Deleting up to 90% of physical assets costs, these companies have lower fees and higher transparency when compared with traditional consultancy services provided by incumbent firms. Using modern marketing and user-friendly communication, they gained trust of many investors, arriving to manage more than $200 Billion as their Asset under management. Focusing specifically on the Italian Robo-Advisory industry, on one hand a stand-alone start-up named MoneyFarm has developed a Pure Robo-Advisor and is now a global player operating in three different countries. On the other an incumbent bank built YellowAdvice, a Hybrid Robo-Advisor, to satisfy customers' needs. Comparing the business model sustainability of these two services provides a deep understanding of the current landscape within this industry, still evolving nowadays.