Robo-Revolution in the Financial Sector

Financial institutions are increasingly leaning on robo-advisors to devise new business opportunities, and deliver enhanced customer services with intelligent algorithms and intuitive graphical user interfaces. The financial industry stores a vast amount of data, including both transactions and personal information, and is increasingly looking to make the most of it for improved business models and better customer retention. However, the noise and behavioral elements inherent in the raw financial data often require nonstandard solutions, possibly yet to be developed, to gain useful insights from it. Researchers are still experimenting with and exploring the full potential of robo-advisors in the finance industry. In this paper, we present an overview of the impact of robo-advisors in the financial sector by highlighting use cases how robo-advisors coupled with machine learning are used currently and explore their potential with reinforcement learning based algorithms for the future.