The robots are rising, and they are trying to put money in your pockets.
In March 2016, investment banking firm Goldman Sachs made a very interesting acquisition that hints at the future of investment advice. Honest Dollar, a small tech startup based in Texas, is now part of Goldman Sachs. What this firm provides is a futuristic service that allows individuals to choose from three retirement plans that they can sign up for online. The investment aspect of these plans is automated and handled by algorithms that choose the instruments that fit the financial goals of account holders.
Honest Dollar is one of many tech firms dedicated to the automation of personal finance. Computer aided investing applications are nothing new; software services that engaged in pattern recognition and sent signals to traders were introduced in the 1990s, and robo-trading is a strategy that has been used by Wall Street firms and individual traders since the early 21st century. The combination of programmatic algorithms and artificial intelligence is currently in use by investment banking firms around the world; until recently, however, this type of automation has mostly stayed out of personal finance.