Robo-Advisors: Investing Through Machines

4 Pages Posted: 26 Mar 2019 Last revised: 27 Apr 2020

See all articles by Facundo Abraham

Facundo Abraham

World Bank

Sergio L. Schmukler

World Bank - Development Research Group (DECRG)

José Tessada

Business School, Pontificia Universidad Católica

Date Written: February 26, 2019


Investing through online automated platforms, known as robo-advisors, is increasingly popular. Robo-advisors expand access to wealth management services by making it easier and less costly to open investments accounts and receive financial advice, as well as plan and automate investment decisions. However, the rise of robo-advisors requires consumers to understand the limitations of these services and to get proper financial education. Policy makers need to grapple with the impact of robo-advisors on the overall financial system, as well as reassess their regulatory and supervisory practices.

Keywords: Pensions & Retirement Systems, Educational Sciences, International Trade and Trade Rules, Educational Policy and Planning - Ministry of Education, Educational Institutions & Facilities, Educational Policy and Planning - Institutional Development, Educational Policy and Planning

Suggested Citation

Abraham, Facundo and Schmukler, Sergio and Tessada, Jose, Robo-Advisors: Investing Through Machines (February 26, 2019). World Bank Research and Policy Briefs No. 134881, Available at SSRN:

Facundo Abraham (Contact Author)

World Bank ( email )

1818 H Street, NW
Washington, DC 20433
United States

Sergio Schmukler

World Bank - Development Research Group (DECRG) ( email )

1818 H. Street, N.W.
MSN MC 3-301
Washington, DC 20433
United States
202-458-4167 (Phone)
202-522-3518 (Fax)


Jose Tessada

Business School, Pontificia Universidad Católica ( email )

Vicuna Mackenna 4860

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