Robo advice that’s a ‘Snap’

Reuters quotes experts like Reginald Browne, head of ETF trading at Cantor Fitzgerald, who thinks that this approach to the delivery of financial services is "amazing and potentially disruptive, especially in its ability to engage a Millennial consumer set that's still emerging."

Additionally, like many free social networking offerings, Snapchat is searching for diverse ways to generate revenue and better monetize its business model.

But the "how" is the more interesting part of the story. Like many 'information-leaks-before-official announcements', the details are slim and speculative. Reuters says only that "Snapchat is understood to be at the front of a queue of tech firms developing Robo-Advisory technology" which will allow users to create "customized investment strategies for retirement planning" and allow them to "click-and-invest directly into financial products via their mobile phone applications." 

With 100 million daily active users, Snapchat has the consumer base in place to begin its robo-advisor experiment. But just because you build it, will they come? It will likely depend on whether they develop an easy-to-use, intuitive system that fits perfectly with their consumer base, or adapt an existing robo platform accordingly. 

Regardless of the specifics, access is key. As Cantor Fitzgerald's Browne notes, "The landscape for financial services has been heavily democratized by the rise of the ETF, now social media platforms have the opportunity to democratize the accessibility and delivery of those products and advisory services."