About Robo Advisory-
Robo-advisors, also known as robo-advisers, are a type of financial adviser who gives financial advice or manages investments online with little to no human participation. They offer digital financial advice based on mathematical or algorithmic criteria. Financial advisers, investment managers, and data scientists build the algorithms, which are then written in software by programmers. These algorithms are run by software and do not necessitate the use of a human advisor to provide financial advice to a customer. The software's algorithms are used to automatically allocate, manage, and optimise clients' assets for short- and long-term investing. The level of personalisation, discretion, engagement, and human interaction differentiates robo-advisors.
Attributes | Details |
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Study Period | 2018-2030 |
Base Year | 2023 |
Unit | Value (USD Million) |
CAGR | 31.32% |
The market is seeing moderate market players, by seeing huge growth in this market the key leading vendors are highly focusing towards the production technologies, efficiency enhancement and product life. There is various growth opportunity in this market which is captured by leading players via tracking the ongoing process enhancement and huge invest in market growth strategies. Analyst at AMA Research estimates that Global Players will contribute the maximum growth to Global Robo Advisory- market throughout the forecasted period. Established and emerging Players should take a closer view at their existing organizations and reinvent traditional business and operating models to adapt to the future.
Fincite (Hessen), Betterment (United States), Charles Schwab & Co., Inc. (United States), Ellevest (United States), Ginmon Vermögensverwaltung GmbH (Germany), SigFig Wealth Management (United States), Social Finance, Inc. (United States), Wealthfront Corporation (United States), Wealthify Limited United Kingdom and The Vanguard Group, INC. (United States) are some of the key players that are part of study coverage.
Segmentation Overview
AMA Research has segmented the market of Global Robo Advisory- market by Type (Conventional and Hybrid), Application (Account Setup, Robust Goal Planning, Account Services, Portfolio Management, Security Features, Attentive Customer Service, Comprehensive Education, Socially Responsible Investing (SRI) and Halal Investing or Tactical Strategies) and Region.
On the basis of geography, the market of Robo Advisory- has been segmented into South America (Brazil, Argentina, Rest of South America), Asia Pacific (China, Japan, India, South Korea, Taiwan, Australia, Rest of Asia-Pacific), Europe (Germany, France, Italy, United Kingdom, Netherlands, Rest of Europe), MEA (Middle East, Africa), North America (United States, Canada, Mexico). If we see Market by Nature, the sub-segment i.e. Automated will boost the Robo Advisory- market. Additionally, the rising demand from SMEs and various industry verticals gives enough cushion to market growth.
Influencing Trend:
Growing advanced digitization technology
Market Growth Drivers:
Fastly growing digitalization in financial services
Challenges:
Lack of awareness about robo advisory among the consumers
Restraints:
High growth rate but low cost production
Opportunities:
Develop their offerings and grow their existing portfolios with affordable & better returns services
Market Leaders and their expansionary development strategies
In March 2022, flatexDEGIRO AG, Europe's largest and fastest-growing online broker for retail investors, announced the signing of a Memorandum of Understanding (MoU) to extend its long-standing B2B partnership with digital wealth manager Whitebox, one of the independent robo-advisors for retail investors. Together, flatexDEGIRO and Whitebox offer a fully digital investment solution to flatexDEGIRO's customers.
In January 2023, M&G Wealth announced the launch of a hybrid robo-advisor. This new platform uses an algorithm to determine each customer's risk appetite, financial knowledge and financial situation; available as an app on Android and iOS and a web application, the platform provides investors with access to a choice of 'classic' and 'targeted' portfolio.
Key Target Audience
Developer, Venture Capitalists, Government Bodies, Corporate Entities, Government and Private Research Organizations and Others
About Approach
To evaluate and validate the market size various sources including primary and secondary analysis is utilized. AMA Research follows regulatory standards such as NAICS/SIC/ICB/TRCB, to have a better understanding of the market. The market study is conducted on basis of more than 200 companies dealing in the market regional as well as global areas with the purpose to understand the companies positioning regarding the market value, volume, and their market share for regional as well as global.
Further to bring relevance specific to any niche market we set and apply a number of criteria like Geographic Footprints, Regional Segments of Revenue, Operational Centres, etc. The next step is to finalize a team (In-House + Data Agencies) who then starts collecting C & D level executives and profiles, Industry experts, Opinion leaders, etc., and work towards appointment generation.
The primary research is performed by taking the interviews of executives of various companies dealing in the market as well as using the survey reports, research institute, and latest research reports. Meanwhile, the analyst team keeps preparing a set of questionnaires, and after getting the appointee list; the target audience is then tapped and segregated with various mediums and channels that are feasible for making connections that including email communication, telephonic, skype, LinkedIn Group & InMail, Community Forums, Community Forums, open Survey, SurveyMonkey, etc.