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Robo-Advice - Thematic Research

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  • 40 Pages
  • December 2019
  • Region: Global
  • GlobalData
  • ID: 4898136
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Robo-Advice - Thematic Research


This report analyzes the impact of robo-advice on financial services, with a focus on the prospects of different types of robo-advice in wealth management. It discusses technology trends, strategic trends, regulatory trends, and consumer trends in detail. The report also provides insights on optimization of the industry and the value chain through robo-advice. In addition, it covers the different types of provider entering the robo-advice market.

The market for direct-to-consumer robo-advice is crowded and ripe for acquisition, with many players pivoting to B2B. But the idea that robo-advice has failed is a misnomer. The tech and consumer mega-trends driving digitization are much bigger than any one robo-advisor - and they are irreversible. The question is how that’ll play out in the wealth space.

At the HNW end, wealth is a very human business. Change has been slow, but digital modules (or pieces of robo) are automating menial tasks and empowering advisors to have more high-value, high-impact interactions across a much larger book of clients. Incumbents are even white-labeling proven digital tools to independent advisors.

At the mass affluent end, the economics of that business make digital the only viable distribution model. This segment - soon to inherit vast wealth and already managing most of their lives through digital - represent the next generation of HNW individuals, and incumbents that are under-invested in digital today risk becoming less relevant to key decision-makers.

  • For HNW individuals, digital change has been slower, more contested, and patchier than elsewhere in financial services.
  • Social media has improved the research process both for individual financial advisors and for assessing robo performance.
  • As digital tools become more important across various parts of the value chain, providers are transitioning slowly towards cloud-native, API micro-services.
  • Investment advice is a heavily regulated part of financial services, with specific processes and procedures governing transparency, suitability of advice, and eligibility.

Reasons to buy
  • Understand the evolving robo-advice market and increasing digitalization in the wealth space.
  • Identify the key trends driving robo-advice.
  • Receive detailed insights related to changes in different aspects of the value chain.
  • Understand the changing market by learning about different providers entering the robo-advice space.

Table of Contents

  • Players
  • Trends
  • Technology trends
  • Strategic trends
  • Regulatory trends
  • Customer trends
  • Industry analysis
  • Startup robos offer a better user experience than incumbents
  • Robo-advice will disrupt incumbent wealth services
  • Robo-advice is a prerequisite to attracting millennials
  • Incumbents source robo capabilities through partnerships
  • Cybersecurity is a bigger threat than robo-advice
  • Wealth managers are investing in various technologies
  • Market size and growth forecast
  • Deals, mergers, and acquisitions
  • Timeline
  • Value chain
  • Impact of robo capabilities
  • Customer acquisition
  • Onboarding
  • Needs analysis
  • Strategy and planning
  • Implementation and monitoring
  • Disrupting the existing value chain
  • Companies section
  • Independents
  • Asset management firms
  • Retail banks and credit unions
  • Private banks/investment banks
  • Tech companies
  • Adjacent verticals
  • Appendix: Our thematic research methodology

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Betterment
  • Ellevest
  • Pearson Capital
  • Moneyfarm
  • Nutmeg
  • Scalable Capital
  • Wealthfront
  • SigFig
  • WealthBar
  • Stockspot
  • Wacai
  • TD Ameritrade Essential Portfolios
  • Vanguard Personal Advisor Services
  • Charles Schwab
  • Deutsche Bank
  • ABN Amro
  • Ally Financial
  • Capital One
  • Danske Bank
  • DBS
  • Lloyds
  • HSBC
  • Merrill Edge
  • NatWest
  • Santander’s DIA
  • OCBC
  • Wells Fargo
  • Credit Suisse
  • Goldman Sachs
  • Morgan Stanley
  • Caifu Hao
  • Ant Fortune
  • Rakuten
  • Overstock
  • Aviva
  • Ping An Insurance
  • Robinhood
  • Wealthsimple