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Events ‘IFAs must integrate robo to survive'

‘IFAs must integrate robo to survive'

Robo advisors feel that IFAs need to start adapting to the robo model to sustain their business.
Daya R Mar 3, 2017


With many robo advisors popping up across the country, these advisors claim that they are the future of the financial advisory business. They feel that robo advisory is inevitable and the sooner advisors start using them, the better.

Talking at an event on Robo Advisory earlier this week, Kunal Bajaj of Clear Funds, an online advisory firm said that robo advisors have the advantage of giving advice in an easily accessible and precise way.  “We are in an era of smartphones and internet; never before has a country been so ready to adapt to technology. Just as people took to online shopping, more and more investors are going to turn to robo advisors,” he said.

Talking about the capability of a robo advisor in an adverse market, Sadique Neelgund of Network FP, wondered if Robo advisors would be able to hand hold investors. “Investment is an emotional process. A financial advisor understands his clients and tries to assuage his fears during adverse market phases. A robo model will be unable to do this. Which is why a human element is needed in the advisory set up,” he said.

Arguing the case for robo advisors,  Debasish Bose, Associate Director, IDFC AMC, compared robo advisors to google maps, “If I were to travel in an unknown city, I might be more comfortable having google maps with me rather than a local guide, as it is more accurate and removes the possibility of human error and most importantly it is free.”

He quickly clarified that while robo advisory might not be free of cost it will still be cheaper than traditional advisory.

While everyone agreed that robo advisors were inevitable, the path ahead seems to be how advisors choose to use robo in their advisory models. “If brick and mortar advisors are able to give the same quality of advice at a fraction of the cost, obviously they will be getting more clients,” he said.

Neville Poncha of IntelX Money felt that though many advisors might be worried about the high cost of client acquisition, the robo model could be implemented in parts. “If you are unable to fund an end-to-end robo model, an integration of robos within an advisory model or a hybrid model seem the logical next step. This way both the advisor and investor can benefit from the best of both the worlds.”

Agreeing with Neville and talking about the adoption of robos within AMCs and financial institutions, Debasish said, “I expect to see more hybrid models coming up, with AMCs also partnering with robo advisors, or developing a robo platform of their own, as has been seen in developed countries, robo advisory will soon be the new reality.”

Like them or hate them, it seems that robo advisors are here to stay. Currently there are 40 odd robo advisors in the market. 

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Prashant · 2 years ago
This is absolutely wrong. If to go is the future there will be no ifa required. This model is flawed which SEBI has permitted. And this is just a marketing strategy to advertise robo in such a way that we feel they are right. Please ignore them and they will perish.
Neville · 1 year ago
I think we need to move with the times and do what's in the customers best interest and also reach out to a higher percentage of the investable population
Felix Zeman · 2 months ago
Please read my provider's BG/SBLC Sale Transaction Procedure below and see if it will suit your requirements.


1.    Buyer submits Letter Of Intent (LOI) with full banking coordinates (there must be sufficient cash funds in this account), Enlarged 140% Colour copy of Passport , Client Information Sheet , Certificate of Incorporation (if applicable), Corporate Resolution (if applicable), Non-Solicitation Statement, and an Irrevocable Fee Protection Agreement .

2.    After conducting due diligence, the Seller will countersign the LOI and return it to Buyer including details of the BG Issuing bank, and Seller’s Passport copy. This LOI automatically becomes a full commercial recourse contract and will be notarized to avoid contract breach and Buyer will be required to take care of notarization expenses of the contract documents here in UK. After notarization of the contract documents here in the UK, both parties shall lodge the executed contract with their respective Banks.

3.    Within two (2) banking days, the Seller’s Bank shall send a PRE-ADVICE SWIFT MT199 or MT-799 to the Buyer’s Bank. (EXHIBIT A )  The PRE-ADVICE shall be valid for  four (4) banking days only.

4.    Within the same banking day, the Seller shall email a courtesy copy of the PRE-ADVICE SWIFT MT199 or MT-799 to the Buyer for confirmation. Within three (3) banking days after authentication of the PRE-ADVICE SWIFT MT199 or MT-799, the Buyer’s Bank shall reply and send a  SWIFT MT-799 to the Seller’s bank and a courtesy copy shall be sent  to the Seller’s email.

5.    Within three (3) banking days, after authentication of the Buyer’s SWIFT MT-799, the Seller’s BG Issuing Bank shall send the Bank Guarantee via SWIFT MT-760 to the Buyer’s Bank  ( EXHIBIT B ) and a courtesy copy shall be sent to the Buyer’s email. The Buyer’s bank verifies and authenticate the BG sent via SWIFT MT-760.

6.    Within three (3) banking days, after authentication of the BG sent via SWIFT MT-760, the Buyer shall send payment to the Seller via SWIFT MT-103 and concurrently pay Consultants commission fees of Two Percent of each tranche face value. Courtesy copies of the commission payments shall be sent to the respective consultants/beneficiaries and their paymasters.

7.    Within seven (7) banking days after authentication of receipt of payment to the Seller, the Seller’s BG Issuing Bank shall send the hard copy of the BG to the Buyer’s Bank  via Bank Bonded Courier.

8.    All subsequent tranches will be based on the same procedures until collateral or funds become exhausted.

9.    Any unauthorized calls by any party or its representative lawyers to probe or communicate in an improper way to bank(s) in this transaction shall be prohibited and contract terminated.

10. Please, Ready, Study and Understand VERY WELL, we will work STRICTLY base on this Transaction Procedure.


Contact Me Via Email:- bfltd2011@gmail.com

I look forward to a mutually beneficial business relationship.


Felix Zeman.
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