Technology won’t entirely replace human advisors, says Elliott Weissbluth, chief executive officer of HighTower Advisors. But advisors even ones like HighTower’s who specialize in wealthy clients—will need to find ways to incorporate technology and become more efficient, he says. Some big established players are making deals with the new startups. Fidelity Investments and TD Ameritrade have started partnerships with robo-advisors, and the insurance giant Northwestern Mutual bought online planner LearnVest in March.
Despite these trends, just 12 percent of financial advisors surveyed by Corporate Insight said they’re interested in incorporating a robo-advisor service into their business. In the investment industry, “things are going to change faster than people believe they’re going to change,” says Weissbluth. If advisory firms such as HighTower don’t adapt, he says, “We become dinosaurs.”