Global Robo-Advisors Market: Overview

The recent advancements in the fields of machine learning (ML), artificial intelligence (AI), and neural research are promising to revolutionize the business models of a number of industries wherein there has always been a strong demand for automation of complex activities that are handled by humans and hence are prone to errors. Primarily in the financial sector, the need to manage wealth in digital manners has paved to way an incrementing demand for robo-advisors, which use preset algorithms to sort consumers on the basis of their ability to manage risk and hence offer predefined and low-cost ETFs. It has been observed that the advent of robo-advisors has reduced the cost of wealth management from 1.0% to 2.0% to 0.15% to 0.50% of the total assets. These advisors helps in developing a portfolio for the clients, automates rebalancing, and tax-loss harvesting. Since it works under a transparent technology and offers effective and unbiased financial advice, the demand in the global robo-advisors market will continue to multiply during the forecast period of 2017 to 2025, according to this business and commerce study by Transparency Market Research.

Global Robo-Advisors Market: Key Research Aspects

The analysts of this report have developed a comprehensive study regarding the commerce of the market for robo-advisors, starting off with a crisp executive summary of the current condition and its future prospects. Then, there is a dedicated analysis chapter on various factors that may define the demand going forward, such as drivers, trends, opportunities, and challenges. Strong impetus has also been put on the segmentation of the market as it is essential for any business to identify which aspects have stronger demand rather than concentrating on a tradition. To complete a through business study, the report finishes off with a featured section on the competitive landscape, wherein top three and top five companies have been identified for their market shares, recent strategic decisions, product portfolio, and geographical presence.

Global Robo-Advisors Market: Trends and Opportunities

The sheer benefits of robo-advisors in order to enable automatic management of individual’s wealth on the basis of algorithms is the primary driver of the global robo-advisors market. A number of small investors can now use robo-advisors to monitor the development of their portfolio as they are available at low starting prices, offer attractive returns, and are transparent, strikingly different and innovative than classical investment plans offered by the banking sector. It has been observed by the analysts of the TMR report that the current and upcoming generation across various emerging economies are technology savvy and are preferring digital tools. In addition to that, the vendors of financial advices are also embracing the new technologies as they can help them serve a larger pool of customers in a time-efficient manner.

On the other hand, the lack of direct contact or personalized support to the clients, escalating risk profiles due to changing factors such as retirement and income, and inability to adapt to changing scenarios on the run-time are a few factors obstructing the robo-advisors market from attaining its true potential.

Based on the mode of automation, the global robo-advisors market can be segmented into fully automated and semi-automated, whereas on the basis of services, the market can be bifurcated into tax-loss harvesting, retirement planning, and investment advisors, wealth management, business to business robo advisors, and personal financial advisors.

Global Robo-Advisors Market: Regional Analysis

Geographically, the report takes stock of the potential of the demand that can be expected from every important region including North America, Asia Pacific, Europe, South America, and the Middle East and Africa.

Global Robo-Advisors Market: Competitive Landscape

Wealthfront Inc., Betterment Holdings Inc., Charles Schwab & Co., Bambu, Hedgeable, Inc., WiseBanyan, Inc., Ally Financial Inc., AssetBuilder Inc., SigFig Wealth Management, and blooom, Inc. are some of the key companies operating in this market.

This study by TMR is all-encompassing framework of the dynamics of the market. It mainly comprises critical assessment of consumers' or customers' journeys, current and emerging avenues, and strategic framework to enable CXOs take effective decisions.

Our key underpinning is the 4-Quadrant Framework EIRS that offers detailed visualization of four elements:

  • Customer Experience Maps
  • Insights and Tools based on data-driven research
  • Actionable Results to meet all the business priorities
  • Strategic Frameworks to boost the growth journey

The study strives to evaluate the current and future growth prospects, untapped avenues, factors shaping their revenue potential, and demand and consumption patterns in the global market by breaking it into region-wise assessment.

The following regional segments are covered comprehensively:

  • North America
  • Asia Pacific
  • Europe
  • Latin America
  • The Middle East and Africa

The EIRS quadrant framework in the report sums up our wide spectrum of data-driven research and advisory for CXOs to help them make better decisions for their businesses and stay as leaders.

Below is a snapshot of these quadrants.

1. Customer Experience Map

The study offers an in-depth assessment of various customers’ journeys pertinent to the market and its segments. It offers various customer impressions about the products and service use. The analysis takes a closer look at their pain points and fears across various customer touchpoints. The consultation and business intelligence solutions will help interested stakeholders, including CXOs, define customer experience maps tailored to their needs. This will help them aim at boosting customer engagement with their brands.

2. Insights and Tools

The various insights in the study are based on elaborate cycles of primary and secondary research the analysts engage with during the course of research. The analysts and expert advisors at TMR adopt industry-wide, quantitative customer insights tools and market projection methodologies to arrive at results, which makes them reliable. The study not just offers estimations and projections, but also an uncluttered evaluation of these figures on the market dynamics. These insights merge data-driven research framework with qualitative consultations for business owners, CXOs, policy makers, and investors. The insights will also help their customers overcome their fears.

3. Actionable Results

The findings presented in this study by TMR are an indispensable guide for meeting all business priorities, including mission-critical ones. The results when implemented have shown tangible benefits to business stakeholders and industry entities to boost their performance. The results are tailored to fit the individual strategic framework. The study also illustrates some of the recent case studies on solving various problems by companies they faced in their consolidation journey.

4. Strategic Frameworks

The study equips businesses and anyone interested in the market to frame broad strategic frameworks. This has become more important than ever, given the current uncertainty due to COVID-19. The study deliberates on consultations to overcome various such past disruptions and foresees new ones to boost the preparedness. The frameworks help businesses plan their strategic alignments for recovery from such disruptive trends. Further, analysts at TMR helps you break down the complex scenario and bring resiliency in uncertain times.

The report sheds light on various aspects and answers pertinent questions on the market. Some of the important ones are:

1. What can be the best investment choices for venturing into new product and service lines?

2. What value propositions should businesses aim at while making new research and development funding?

3. Which regulations will be most helpful for stakeholders to boost their supply chain network?

4. Which regions might see the demand maturing in certain segments in near future?

5. What are the some of the best cost optimization strategies with vendors that some well-entrenched players have gained success with?

6. Which are the key perspectives that the C-suite are leveraging to move businesses to new growth trajectory?

7. Which government regulations might challenge the status of key regional markets?

8. How will the emerging political and economic scenario affect opportunities in key growth areas?

9. What are some of the value-grab opportunities in various segments?

10. What will be the barrier to entry for new players in the market?

Note: Although care has been taken to maintain the highest levels of accuracy in TMR’s reports, recent market/vendor-specific changes may take time to reflect in the analysis.

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