Robo-advisor is a financial advisor who provides portfolio management and financial planning services online, without little or no human intervention. These services are offered by a wide variety of financial institutions. Robo advisors offer digital financial advice based on mathematical rules or algorithms, which are executed by software. Robo advisors exhibit various benefits over traditional investment management services which include low fees, re-evaluation, and simpler strategic approach for assets allocation.
In addition to this, rising cost of financial planners across the globe have increase the adoption of robo advisor among various end users. It provides convenience to investors for investing in different asset classes conveniently through mobile phones or web applications. Furthermore, it provides full access to portfolio management tools, which offer more flexibility and security to users.
Growing digitization in financial services and shift from traditional investment services to robo advisory are the major factors that drive the growth of the global robo advisory market. However, lack of human expertise hampers the growth of the market. Conversely, untapped potential of emerging economies and surge in government support & initiatives toward robo advisory services are expected to provide lucrative opportunity for the market expansion during the forecast period.
The global robo advisory market is segmented into business model, service provider, service type, end user, and region. In terms of business model, the market is fragmented into pure robo-advisors and hybrid robo-advisors. By service provider, it is fintech robo-advisors, banks, traditional wealth managers and others. As per service type, it is divided into direct plan-based/goal-based and comprehensive wealth advisory. In terms of end user, the market is bifurcated into retail investor and high net worth individual (HNIs). Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
The key players profiled in the robo advisory market report are Betterment, Blooom, Charles Schwab Corporation, FMR LLC, Personal Capital Corporation, SoFi, SIGFIG, The Vanguard Group, Inc., Wealthfront Corporation, and WiseBanyan, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the global robo advisory market along with the current trends and future estimations to elucidate the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on the global robo advisory market size is provided in the report.
- Porter's five forces analysis illustrates the potency of the buyers and suppliers operating in the industry.
- The quantitative analysis of the market from 2019 to 2027 is provided to determine the market potential.
Robo Advisory Market Key Segments
By Business Model
- Pure Robo Advisors
- Hybrid Robo Advisors
By Service Provider
- FinTech Robo Advisors
- Banks
- Traditional Wealth Managers
- Others
By Service Type
- Direct Plan-Based/Goal-Based
- Comprehensive Wealth Advisory
By End User
- Retail Investor
- High Net Worth Individuals (HNIs)
By Region
- North America
o U.S.
o Canada
- Europe
o UK
o Germany
o France
o Switzerland
o Italy
o Spain
o Rest of Europe
- Asia-Pacific
o China
o India
o Japan
o Australia
o Singapore
o Rest of Asia-Pacific
- LAMEA
o Latin America
o Middle East
o Africa
Key Market Players
- Betterment
- Blooom
- Charles Schwab Corporation
- FMR LLC
- Personal Capital Corporation
- SoFi
- SIGFIG
- The Vanguard Group Inc.
- Wealthfront Corporation
- WiseBanyan Inc.