According to Guillaume Prache, "the younger generations do not turn to their bank clerk for savings advice”. “We are witnessing the emergence of a large multifaceted consulting sector online, . Alongside the sites of the traditional players of the finance world, there are now purely online services. The rapid development of FinTech - the practice of applying digital technologies to finance - underpins this development. There is much talk of 'robo-advice', advice provided by computer programs and algorithms that base themselves on input provided by the consumer regarding their background and financing needs (profitability, risk profile, horizon, etc.) and that direct you to appropriate investments."
Electronic advisors, who have the advantage of being very inexpensive in comparison with more traditional players, are an interesting alternative for those investors who do not require custom-made solutions. That being said, 'robo-advisors' are still far from, for instance, offering estate planning strategies. ,
The European authorities are looking at the impact of the development of digital finance, and launched a r a wide stakeholder consultation at the end of 2015, coming to a close on the 18th of March 2016.
"The big question is whether it is better to regulate this new world of online finance, especially when it comes to advice." resumes Guillaume Prache. "The financial adviser is regulated, but since advice now also comes from non-financial players we find ourselves in a legal limbo. Do online advisors follow the basic rules regarding information and ethics that apply to traditional players? "
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