Major players in the robo advisory market are Betterment LLC, Charles Schwab & Co. Inc. , Wealthfront Corporation, Personal Capital Corporation, Bambu, Blooom Inc. , Ellevest, FutureAdvisor, Nutmeg Saving and Investment Limited, SigFig Wealth Management, The Vanguard Group Inc.
New York, June 06, 2022 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Robo Advisory Global Market Report 2022" - https://www.reportlinker.com/p06284122/?utm_source=GNW
, SoFi Wealth, Hedgeable Inc., WiseBanyan Inc., AssetBuilder Inc., Ally Financial Inc., Wealthsimple, Axos Invest Inc., Scalable Capital, Moneyfarm, Acorns, United Income, T. Rowe Price, Rebellion Research, WealthNavi, TD Ameritrade, Schwab Intelligent Portfolios, Stash Invest, Fincite, Ginmon Vermogensverwaltung GmbH, and Social Finance Inc.
The global robo advisory market is expected to grow from $18.71 billion in 2021 to $28.10 billion in 2022 at a compound annual growth rate (CAGR) of 50.20%. The growth is mainly due to the companies’ resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges. The market is expected to reach $135.11 billion in 2026 at a CAGR of 48.08%.
The robo advisory market consists of sales of robo advisory software and related services by entities (organizations, sole traders, and partnerships) that are engaged in providing financial advice in an online mode.Robo-advisors offer digital investment management services platforms with the help of automated, algorithm-driven financial planning services with very little to no human intervention.
They use an online questionnaire to collect information from clients regarding their financial situation, degree of risk, and future goals, and then use the data to offer advice and automatically invest client assets.
The main types of business models in robo-advisory are pure robo advisors and hybrid robo advisors.A pure robo advisor is a digital financial service that uses automated technology to help investors with financial solutions.
A hybrid robo advisor is a service that typically combines human financial advisors with robo advisors with access to financial guidance or planning.The providers of robo-advisory include fintech robo-advisors, banks, traditional wealth managers, and others.
The types of services provided include direct plan-based/goal-based and comprehensive wealth advisory. The robo advisory services are used by healthcare, retail, education, and other end-users.
In 2021, North America will be the largest region in the robo advisory market.Asia-Pacific is expected to be the fastest growing region in the forecast period.
The regions covered in this report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, the Middle East, and Africa.
The growing digitalization in financial services is contributing to the growth of the robo advisory market. In the financial industry, digital technologies such as artificial intelligence (AI), the cloud, blockchain, and fintech are making it easier to access funds and assisting the finance sector by using automated techniques to improve customer experience.For instance, in December 2020, Franklin Templeton, a US-based investment company, announced a partnership with Bambu and Apex Clearing to launch Tango, a new turnkey robo-adviser. This partnership will benefit by using the Apex platform to facilitate trading and custody for the robo-adviser and using the cloud-based platform of Bambu to facilitate a white-label software service. So, rising digital integration in financial services is driving the market’s growth.
Advancements in technology are significantly shaping the robo advisory market.With the advancement of technology in areas such as advanced analytics, artificial intelligence, and natural language processing, the effectiveness of robo-advisory is expected to increase.
This will enable robo-advisors to strengthen the value proposition and have a higher impact across the value chain. For instance, in November 2020, Unifimoney Inc., a US-based company operating in robo advisory, announced a partnership with Quantel AI Inc. to launch AI-based robo-investing products as part of the Unifimoney investing platform. These products will use Quantel’s proprietary AI engines to evaluate the risk profile and stated goals and advise on portfolio selection to meet the customer’s goals.
In August 2019, Wealthfront, a US-based company offering robo-advisory services, announced the acquisition of Grove Advisors for an undisclosed amount.This acquisition will help Wealthfront get an automated financial advice platform by developing Wealthfront’s Self-Driving Money strategy that would allow clients to directly deposit their paychecks onto its platform.
Grove Advisors is a US-based hybrid robo-advisor company that focuses on providing access to certified financial planners and financial plans for clients.
The countries covered in the Robo Advisory market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA.
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