The Impact of Robo-Advisors on Human Financial Advisors: A Study of Zenith Bank Plc. Lagos Nigeria

Banks in Nigeria are facing a major change in their traditional advisory business. Many banks have recently started implementing technology to improve customer interactions. The study examined the impact of robo-advisors on human financial advisors in Zenith Bank head office, Lagos State. The specific objectives of the study were to; examine the influence of robo-advisors on the effectiveness of human financial advisors; analyze if the challenges faced by human financial advisors in the face of technological advancements affects the financial services industry. Purposive sampling was employed in this study to select 100 staff of the total population of 510 staff. A questionnaire that was validated by professionals was employed as research instrument. Pearson’s product moment coefficient correlation statistical tool was used to evaluate descriptive, basic tables and percentages created using the statistical packages for social sciences (SPSS) and to assess the two (2) hypotheses. The result of the Pearson correlation in this study found that the role and efficacy of human financial advisors are impacted by the influence of robo-advisors, as indicated by the Pearson correlation test (r = 0.616; α = 0.01), and that the financial services industry is impacted by the possible difficulties that human financial advisors may encounter when confronted with technological advancements (r = 0.965; α = 0.05). the study concludes that there is significant relationship between robo-advisors on the effectiveness of human financial advisors. The study further concludes that there is significant relationship between the challenges faced by human financial advisors and the financial services industry. The study recommends that financial advisors should think about diversifying their revenue streams and service offerings beyond traditional investment management, such as offering holistic financial planning, tax planning, estate planning, and insurance advisory services. To stay competitive in this study, financial advisors should also continuously upskill and stay up to date with the latest industry trends, technological advancements, and client preferences.