Proceedings of the 8th International Conference on Financial Innovation and Economic Development (ICFIED 2023)

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Adoption of Robo-Advisory Service in the Personal Financial Planning Industry in Australia

Authors
Jia Khang Hoe1, *
1Queensland University of Technology, Brisbane, Australia
*Corresponding author. Email: jiakhang.hoe@hdr.qut.edu.au
Corresponding Author
Jia Khang Hoe
Available Online 15 May 2023.
DOI
10.2991/978-94-6463-142-5_70How to use a DOI?
Keywords
Robo-advisor; Robo-advisory services; Fintech; Artificial intelligence; Personal financial planning
Abstract

Everyone needs personal financial planning. The post-GFC fraud and financial crisis has resulted in confidence in financial services and professionals being at an all-time low. Financial advisors may not be affordable for everyone because of their high cost, diverse demand for financial advice, and barriers to consumers getting complete financial advice. Robo-advisory services can provide low-cost financial guidance. Robo-advisory services use artificial intelligence and algorithms to generate limited financial advice based on a client's portfolio, risk preferences, and financial goals. Robo-advisory services still have fiduciary obligation and competence concerns. This study considers regulators and service providers and then explores how ASIC guidelines facilitate the deployment of robo-advisory services in personal financial planning in Australia. This study establishes the definition of a robo-advisory services and examines its fiduciary duties, natural persons, minimum training and competency standards, and the results show that the regulations and recommendations are acceptable. At the same time, this study will explore how Australian robo-advisory service providers can help with personal financial planning. The findings indicate that service providers' product disclosure statements must be revised to facilitate robo-advisory services.

Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the 8th International Conference on Financial Innovation and Economic Development (ICFIED 2023)
Series
Advances in Economics, Business and Management Research
Publication Date
15 May 2023
ISBN
10.2991/978-94-6463-142-5_70
ISSN
2352-5428
DOI
10.2991/978-94-6463-142-5_70How to use a DOI?
Copyright
© 2023 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Jia Khang Hoe
PY  - 2023
DA  - 2023/05/15
TI  - Adoption of Robo-Advisory Service in the Personal Financial Planning Industry in Australia
BT  - Proceedings of the 8th International Conference on Financial Innovation and Economic Development (ICFIED 2023)
PB  - Atlantis Press
SP  - 632
EP  - 638
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-142-5_70
DO  - 10.2991/978-94-6463-142-5_70
ID  - Hoe2023
ER  -