Preface

Robo-advisors are becoming table stakes for the wealth management industry across all segments, from retail to high-net-worth investors. This is because they enable you to manage your own portfolio and financial institution to create automated platforms for effective digital portfolio management. This book is your hands-on guide to understanding how robo-advisors work, and how to build one efficiently. The chapters are designed in a way to help you get a comprehensive grasp of what robo-advisors do and how they are structured with an end-to-end workflow.

You’ll begin by learning about the key decisions that influence the building of a robo-advisor, along with considerations on building versus licensing a platform. As you advance, you’ll find out how to build all the core capabilities of a robo-advisor using Python, including goals, risk questionnaires, portfolios, and projections. The book also shows you how to create orders, as well as open accounts and perform KYC verification for transacting. Finally, you’ll be able to implement capabilities such as performance reporting and rebalancing for operating a robo-advisor with ease.

By the end of this book, you’ll have gained a solid understanding of how robo-advisors work and be well on your way to building one for yourself or your business.