Description du contenu de l'enseignement :
Robo-advisors became increasingly popular as investors are seeking low-cost and automated investment advice. By providing personalized investment portfolios depending on individual’s profile in a flexible way and at a low cost, they start to gradually replace or complement the services traditionally offered by human advisors in the banks. The objective of this course is to discuss the services offered by robo-advisors, their role in the financial industry, but also the issues and challenges they are facing. The course will present the theory of individuals’ optimal life-cycle portfolio choices, and the traditional behavioural biases of individuals making investment decisions. We will see how automated advice can improve the services offered by human advisors by rationalizing investment decisions and customizing the advice to each individual’s needs. Finally, we will discuss their impact on individuals’ behaviour by analysing the results of most recent academic research on the topic.