Final Update: the Product and it’s Future

Well, this is it. This summer has been very fulfilling in terms of developing the basic framework for a Virtual CFO. I have created a basic outline for how to go about developing a secure, useful, and intuitive financial advisor. I will be presenting this outline at the Monroe Scholar Research Showcase along with the implications of the product.

So, what does this future of this space look like? In a word: regulation. In my last post, I mentioned how the SEC warned big banks and developers of robo-advisors about the security and trust risks surrounding these products. This heavily implies regulatory efforts will greatly increase. This means that investment banks and financial services firms must be able to show strong security teams, as well as report all their compliance and continuity operations and procedures.

Additionally, many of these firms may now have to register under the “Fiduciary Rule,” which states that advisors must operate in the best interest of clients. From a Columbia Business School report, “this rule would place additional scrutiny on the requirements to tailor advice to individual client needs, disclose conflicts, and have model governance programs in place.”

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