The study covers one of the leading Robo-advisor in the United States. Betterment, that started offering online wealth management advice to the masses, has moved much beyond and rolled out a series of products to cater to the full stack of the market. In the study, Frost & Sullivan has presented the evolution of Betterment tracking back from its starting point in January 2008, when it launched is the first product to launching several products. We have also looked at the explosive growth attained by the company and explored key strategies adopted by the Betterment to attain growth.
As with most FinTechs, technology is at the heart of Betterments' offering using machine learning to generate personalized investment advice with minimum or no human interference. While this is the main foundation of its offering, it has gone on to add many new feature sets to the offering that not only has helped differentiate but also enabled it to attain a competitive edge over its competitors. Betterment competes with various other Robo-advisors such as Wealthfront, Acorns, safe, but also established wealth management companies such as Vanguard Group and Charles Schwab.
We have further investigated the business model of the company and represented it in the most simplest possible way. The study also covers key technologies used to automate the processed to not only run them more efficiently, but also reduce the cost of executing the process. Its innovative features have also equipped clients to get more out of investments.
Key Issues Addressed:
- Whether Betterment is complementing, extending or disrupting the wealth management market
- If or not Betterment is having the impact of the industry and if it does how big is the impact
We have put our analysis to deep dive into the potential chance of Betterment is impacting the existing business and placed qualitative assessment on which segment and how much can the company impact.
Finally, we have handpicked key points that legacy market participants such as BlackRock, Vanguard, and Charles Schwab can learn from Betterment. These recommendations are pinpointed and will get leading market participants to start thinking about embracing Robo-advisory platform and help them defend their market from disruption.
We have added executive summary that brings all of this together in a crisp form, to help busy executive get the gist of the study and then read sections in detail that matter to them.
1. Executive Summary
2. Business Overview
- Products Offered
- Geographical Presence
- Business Performance
- Investment Received
3. Strategic Imperatives
- Strategic Overview
- Strategic Imperative
4. Business and Disruption Model
- Betterment’s Business Model
- How Does Betterment Disrupt?
- Challenges Faced by Betterment
6. Impact Analysis
7. Betterment Team
- Legal Disclaimer