Research Nester has released a report titled “Robo Advisory Market – Global Demand Analysis & Opportunity Outlook 2028” which delivers detailed overview of the robo advisory market in terms of market segmentation by type, by service type, by end user and by region.
Further, for the in-depth analysis, the report encompasses the industry growth drivers, restraints, supply and demand risk, market attractiveness, BPS analysis and Porter’s five force model.
The global robo advisory market is segmented by service type into wealth management and cash management, out of which, wealth management segment is anticipated to hold the largest market share owing to rising affluence around the globe along with increasing number of populations with greater household wealth and the need for asset allocation amongst customers on account of limited financial background knowledge. In the statistical report Global Wealth Databook 2019 of the Credit Suisse Research Institute, total household wealth in the world peaked to USD 360,603 billion from USD 351,516 billion in-between 2018-2019.
The global robo advisory market is anticipated to record a robust CAGR during the forecast period, i.e. 2020-2028. Adoption of new technologies by organizations in order to deliver financial services at a minimal cost along with the growing financial industry and rising need amongst consumers to manage assets for long term financial goals with minimum risk of loss are some of the factors anticipated to contribute towards the growth of the global robo advisory market in the coming years. In the statistics by The World Bank, insurance and financial services as a percentage of commercial service exports peaked to 8.56% from 7.65% in-between 2005-2018.
Regionally, the global robo advisory market is segmented into five major regions including North America, Europe, Asia Pacific, Latin America and Middle East & Africa region. Among these regions, North America and Europe are the regions expected to hold the largest market share owing to the population in the region having an increased awareness for robo advisory solutions and services. The region is blessed by numerous affluences which is raising the need to manage their financial assets with solutions at a minimal cost. Moreover, Asia Pacific is anticipated to gain significant market share owing to rising awareness for robo advisory solutions and increasing household wealth amongst individuals. In the statistical report Global Wealth Databook 2019 of the Credit Suisse Research Institute, in the year 2019, the largest share of total household wealth was constituted by Asia Pacific, followed by North America and Europe with 39.16%, 31.78% and 25.17% share respectively.
Growing Number Of Internet Users And The Rise In Internet Penetration
In the statistics by the International Telecommunication Union (ITU), number of individuals using the internet peaked to 3924 million from 1100 million in-between 2005-2018 and is expected to reach 4131 million by 2019.
Technological advances on the back of growing adoption of internet amongst individuals is helping companies across industries to engage with their customers. As such, financial advisory companies are increasingly taking the benefit of the rising internet penetration to promote their advisory services across platforms and are trying to gain an extra competitive edge to further connect to its clients so as to gain mutual engagement and trust. Furthermore, with the rising internet penetration consumers are able to access the services via web portal or mobile apps and further invest or take solutions according to their conveniences. Moreover, from the management aspect, online robo advisory services helps to reduce the operational cost which was earlier incurred by providing financial advisory services through dedicated manpower. Such significant factors are thereby anticipated to drive the growth of the global robo advisory market.
However, concerns regarding the conflict of interests amongst clients on the back of definition and suitability of financial advices received by the robo advisors is anticipated to hamper the growth of the global robo advisory market.
The market also provides the existing competitive scenario of some of the key players of the global robo advisory market, which includes company profiling of Betterment LLC, FutureAdvisor, Personal Capital Corporation, The Vanguard Group, Inc., Wealthfront Corporation, Axos Invest, Inc., SigFig Wealth Management, LLC, Nutmeg Saving and Investment Limited, Charles Schwab & Co., Inc. (NYSE: SCHW), and Bambu. The profiling enfolds key information of the companies which encompasses business overview, products and services, key financials and recent news and developments. On the whole, the report depicts detailed overview of the global robo advisory market that will help industry consultants, equipment manufacturers, existing players searching for expansion opportunities, new players searching possibilities and other stakeholders to align their market centric strategies according to the ongoing and expected trends in the future.