Typically the financial planner has online digital вЂњdashboardвЂќ access to the account and incorporates portfolio information into their financial plans. In one of the simpler forms of hybrid collaborations, independent financial planners are referring investments to a robo-advisor while providing over-all financial planning services. new really misses the richness of whatвЂ™s going on, which is an entire industry re-inventing itself to be more modern, more in line with what investors want to pay for, and to be more in line with the consumer experiences of today.вЂќ

вЂњThe type of transformation that is going on is unprecedented,вЂќ says Thompson. Nonetheless, Thompson points to a flurry of deals and huge sums of money that the major financial institutions are pouring into this area to show that the trend is unmistakable. Of course, the trend is still in its early days and much of the activity is behind the scenes. But the larger, long-term trend is robo-advisors and other fintech companies teaming up with outside financial planners and conventional advisory firms in just about every segment of the investment advice business. Firstly, some robo-advisors themselves are adding more human services like basic financial planning and dedicated human advisors. вЂњWe think advisors who are delivering value will continue to thrive,вЂќ says Wealthsimple CEO Michael Katchen. Most robo-advisors recognize their own limitations and see good human advisors as potential partners. Key to the hybrid partnership is freeing up good advisors to provide value-added advice while using technology to: provide transparent online account access across multiple devices, streamline administration, and take care of routine transactions like rebalancing. RELATED: Are robos right for young investors? If you need a comprehensive financial plan or want help coping with a market meltdown, youвЂ™re likely to want to turn to a trusted human advisor with high levels of financial expertise but also human qualities like communication skills and empathy.

But itвЂ™s clear that algorithms wonвЂ™t replace quality human advice in more complex or nuanced situations, at least any time soon. Fueling that impression are hard-hitting ads by robo-advisor Questrade Portfolio IQ, where everyday Canadian investors grill their sleazy-looking conventional advisors about why their fees are so high and their returns are so low. ItвЂ™s easy to get the misleading impression that robo-advisors are antagonistic rivals to human advisors. ( See the accompanying comparison tool below Which Robo-Advisor is Right for You Now for a guide to current offerings from seven leading robo-advisors.) Of course, the trend is still in its early stages and you will only see hints of it in todayвЂ™s robo-advisor offerings. вЂњHybrid is where the future is going and everyone is converging into it,вЂќ says Kendra Thompson, global lead for wealth management at consultancy firm Accenture.

But often you also get more value from the advice because it can be concentrated where you need it most. You can expect to pay less in fees compared to amounts charged by conventional advisors. You get easy digital access and efficiency combined with whatever level of human expertise you need. Increasingly, robo-advisors are teaming up with human advisors in new and creative ways to provide вЂњhybridвЂќ combinations that achieve the best of both worlds.

Now thereвЂ™s a formidable new trend emerging.

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