Robo-Advisors in Social Security

Abstract

The widespread use of innovative technologies, including the use of artificial intelligence, is a driving force for the development of digital technologies also in the finance industry. Those areas of finance that traditionally involved live communication between service providers and service recipients are becoming increasingly digitalized. For example, banking services, concluding insurance transactions, investing financial assets, and so on. All of the above services are currently provided in a digital format, while the range of services and their quality only benefits from the online format of services. It should be noted that the Covid-19 pandemic has significantly boosted up this trend, setting the trend for the accelerated development of digital technologies to ensure 100% accessibility of financial services to users, regardless of any global and local restrictions. In this regard, consulting services have received dynamic development, since objectively, the decision-making process on any type of financial transaction, be it the conclusion of a bank deposit agreement, or a loan, or an agreement on trust management of assets, is preceded by a full-fledged high-quality financial consultation aimed at identified needs depositor or borrower, and offering the user the type of financial product that best suits his financial goals and needs.

One of the areas of such digital services is robotic consultants or “Robo-advisors”. In this article we will present a generalized description of these online services. The object of the study, the results of which formed the basis of this article, are Robo-advisors in the social sphere, in particular in the funded pension system of the Republic of Kazakhstan, since currently existing pension planning services are poorly studied, there are no full-fledged studies and scientific materials on this topic in academic and processual environment. We believe that the materials reflected in this article will help users become more familiar with the issues of pension planning, including the use of modern digital technologies, and become savvier in matters of planning pension savings and achieving financial well-being in retirement age.