As you prepare for the use of robo advisors, the following strategies can help ensure success.

Assess the landscape. What robo advisors are currently in the marketplace? What are their value propositions in relation to each other, and to you? What is the potential threat to your business, and how soon might that threat be real? Are your competitors buying or building these capabilities?
Develop an acquisition strategy. If your credit union contemplates buying a robo advisor, make sure to perform rigorous technical and operational due diligence of the organization. Assess whether the credit union's algorithmic investment philosophy matches yours. Next, put together a post-acquisition integration roadmap to ensure a trouble-free transition that meets your goals.
Transform the organization. As you move into a digital engagement model, evaluate the internal areas that will require investment, such as your website. You'll need to build awareness of your new robo advisor, along with a way to drive traffic to it. Change management plans are critical to making the transformation a success.
Align technology to business needs. If your credit union prefers to build proprietary web-based capabilities to complement the member-facing interaction model, you may want to enlist an unbiased outside party to help ensure you're maximizing the technology to deliver on your business goals.

Robo advisors are on the rise, but they aren't for everyone. Take a close look at your business and your member base to determine if, and when, robo advisors are right for your organization. Many organizations will find success in adopting a hybrid approach that leverages the technology internally, while maintaining the human touch of personal service.

Instant Insights /

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