Nonetheless, just like web-based retailers, they will change the world.

The advice process with robo-advice is familiar.

First, an adviser obtains information and financial data about a person.

Then they use that as a basis for recommending, and implementing, an appropriate investment strategy.

A robo-adviser does exactly the same thing – but without any human involvement.

The robo collects data and information; in most cases, the prospective investor enters it into the system themselves.

At the robo’s heart is an algorithm that scores the information and decides what investments should be chosen.

The robo then presents the investment strategy, which is usually passively focused around index funds or ETFs, and allows easy implementation.

This guide will explain what robo-advice is, potential rewards and pitfalls of a robo recommendation, how it could threaten or compliment traditional financial advice models and how fintech in this area will transform the market in the next few years.

Supporting material produced by: Paul Resnik, director of investment suitability experts FinaMetrica; Nick Eatock, founder of Intelliflo; Ben Goss, co-founder and chief executive of Distribution Technology; and Frazer Wilson, senior consultant at Thomas Miller Investment.