While traditional financial advisors are still vital in providing tailored advice, the proliferation of robo-advisors signifies a significant shift in the industry's service delivery model. They present a host of benefits including 24/7 availability to lower fees, enabling wealth management to be optimised every minute of the day at a lower cost.

This rise of robo-advisors truly showcases the power of digital transformation. By integrating technological innovation, particularly AI and machine learning, robo-advisors are capable of analysing large volumes of data swiftly and accurately. They then use this information to optimise investment strategies and offer personalised advice based on individual financial goals, risk tolerance, and investment timeline.

Digital transformation, through the integration of these innovations, offers customers a self-service platform that provides clear and immediate visibility into their investments. This real-time accessibility, transparency, and direct control over their financial portfolio have drawn a substantial following, particularly among tech-savvy millennials and the burgeoning middle class.

However, the proliferation of robo-advisors also poses a challenge: ensuring the security of sensitive personal and financial information. As digital platforms, they’re susceptible to the same cyber threats as other online services. It is critical then that this aspect of digital transformation includes robust cybersecurity measures to maintain the trust and confidence of users.

Looking to the future, the role of robo-advisors will likely become more prevalent as digital transformation continues to drive innovation in the financial services sector. Their ability to provide effective, personalised, and affordable financial advice makes them a key player in the democratisation of wealth management. Hence, to successfully navigate this digital landscape, financial service providers must understand and embrace the potential that robo-advisors bring to the industry.

In conclusion, robo-advisors, as products of digital transformation, are testament to the positive changes innovation can bring to the financial industry. They represent a significant step forward in making financial planning more accessible and affordable, reinforcing that the future of finance is not only about technology but also about making services more user-friendly and inclusive.