OpenIDEO is an open innovation platform. Join our global community to solve big challenges for social good. Sign up, Login or Learn more

Robo-Advisors Aiding the Elderly with Financial Services

Using technology and artificial intelligence (Robo-Advisors) to help in money management and financials for the elderly.

Photo of Rabbia
8 5

Written by

As time goes on, it is easy to see that technology is booming and changing the world in so many ways. People of all ages are online using what technology and the internet has to offer. Although many people underestimate elders (especially those older than 50) with their knowledge of technology, research shows that over 60% of seniors use the internet on a daily basis. One specific way technology can be used for benefit is gaining help through financial services. An example of this would be using an artificial intelligence service: Robo-Advisor.

Robo-Advisor is an automated financial planner that assists users in making financial decisions. These advisors help meet users’ financial goals and can be especially helpful to elders. Investopedia states that 50% of Robo-Advisor’s clients are likely to be older (Baby Boomers and retirees). Robo-Advisors can be a great choice for retirees that want to save money, don’t want to deal with people, or have somewhat of a tech-savvy mindset. Retirees seeking financial advise and how to maximize income while painting a fairly consistent level of spending from year to year can benefit from Robo-Advisors. Not only can this artificial intelligence help elders, but also those who may be close to retiring and need advice on how to save money for after they retire. Robo-Advisors are specialized for all types of financial planning such as 401K, minimizing taxes, and saving or investing money. Most of all Robo-Advisors acts like a human financial advisor who can help retirees manage their money relating to paying off a mortgage, estate planning, reaching financial goals, and creating a life estate.

Like most new innovations, Robo-Advisors aren't targeted toward younger generations, but that doesn’t change the fact that it may be confusing or scary for older investors who have spent their entire financial lives trusting in a human advisor. Retirees who may be curious about technology and have a willingness to learn may find Robo-Advisory services cheaper and more transparent than traditional financial planning. Overall, the use of Robo-Advisor can help those that are 50 and older manage their financials. This service can help them achieve their goals and also keep track of their money and usage patterns. Using this may give them guidance and help support their dreams and obligations.


Sources:

http://www.pewinternet.org/2014/04/03/older-adults-and-technology-use/

http://www.investopedia.com/articles/financial-advisors/032316/top-roboadvisors-retirees.asp

What is a provocation or insight that might inspire others during this challenge?

Artificial intelligence can be the area of focus for the problem that the challenge provides. By using Robo-Advisors, retirees can always have a helping hand for their finances.

Tell us about your work experience:

I'm a student at the University of Texas at Austin pursuing a degree in MIS.

Specifically, please check all that apply:

  • I'm not currently involved in a credit union, but am curious to learn more!

8 comments

Join the conversation:

Comment
Photo of Tom Short

Thank you, Wingee, for the link!! That sounds exactly like what I was asking about (see my post, which Kate referenced in her comment, below - thanks, Kate!). 

I'd be curious to hear perspectives on the merit of these. 

Awesome!! 

Photo of Rabbia

Loved reading your contribution, Tom! Good job!

View all comments