For a long time, wealth management was reserved for the wealthy. Traditional financial advisors would build customized portfolios, often requiring high minimum investments and charging hefty fees. But that’s changing. Today, automated investment platforms—usually called “robo-advisors”—are reshaping the industry. They’re making investing easier, cheaper, and more accessible for everyone.

What Are Automated Investment Platforms?

Automated investment platforms use algorithms to manage portfolios. Instead of sitting down with a human advisor, investors answer questions about their goals, risk tolerance, and time horizon. Based on those answers, the platform builds and manages a diversified portfolio, usually comprised of low-cost index funds or ETFs.

These platforms automatically rebalance portfolios and reinvest dividends. Some even offer tax-loss harvesting to help investors lower their tax bills. Big names like Betterment and Wealthfront and newer entrants like SoFi and Acorns have gained millions of users by offering simple, affordable investment solutions.

Lower Costs and Fewer Barriers

One of the most significant changes automated platforms have brought to wealth management is cost. Traditional advisors typically charge 1% of assets under management. Robo-advisors often charge between 0.25% and 0.50%; some have no management fees if you use their basic services.

There’s also little to no minimum investment required. In the past, working with a financial advisor often meant having $250,000 or more to invest. Today, you can start with at least $5 on some platforms. This shift has opened the door for younger investors and beginners.

Accessibility and Ease of Use

Automated platforms are designed to be user-friendly. Most mobile apps let you check your portfolio, adjust your goals, or make deposits in just a few taps. Educational resources are built into many apps, helping users learn about investing without feeling overwhelmed.

This ease of use attracts a new generation of investors who value convenience and transparency. Instead of scheduling meetings with advisors and waiting days for portfolio updates, investors can manage everything on their phones, 24/7.

Personalized Strategies at Scale

While robo-advisors don’t offer the deeply personalized advice a human advisor might, they still tailor portfolios to individual goals. Some platforms use advanced algorithms to recommend strategies based on life events, like saving for a house or planning for retirement.

Hybrid models are also emerging. Companies like Vanguard and Schwab offer automated investing with access to human advisors when needed. This approach blends the best of both worlds—keeping costs down while providing personal guidance when it matters most.

Changing Expectations for Human Advisors

Automated platforms aren’t replacing human advisors but forcing them to evolve. Investors now expect lower fees, more transparency, and easier access to information. Many traditional firms adapt by offering their own robo-advisor services or focusing more on holistic financial planning—things that algorithms can’t fully replicate.

Human advisors increasingly position themselves as partners in broader life planning, helping clients navigate complex issues like estate planning, business succession, and family wealth transfers. Tasks that can be automated—like rebalancing or basic asset allocation—are often handed over to technology.

Risks and Limitations

Despite the many benefits, automated platforms aren’t perfect. They operate based on programmed assumptions and historical data. They may not handle unusual financial circumstances well and can’t provide emotional support during market downturns.

Users may also treat investing too casually. Because the platforms make it so easy, some investors may not fully understand the risks they’re taking. And while fees are lower, they can still add up over time—especially if users opt for add-on services.

The Future of Wealth Management

Automated investment platforms are likely here to stay. They’ve made wealth management more democratic, breaking down many barriers that kept average people from investing. As technology improves, we’ll likely see even more sophisticated algorithms, greater customization, and tighter integration with other aspects of personal finance, like budgeting and insurance.

Still, there will always be a place for human advisors, especially those with complex financial lives or who need personal guidance. The future will blend automation for routine and human insight for personal use.

In short, automated investment platforms are changing wealth management by making it more accessible, affordable, and efficient. But they’re also pushing the entire industry to improve, offering better service and lower costs for everyone.