Robo Advisory Market By Business Model (Pure Robo Advisors, Hybrid Robo Advisors), By 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)): Global Opportunity Analysis and Industry Forecast, 2023-2032
Robo-advisor helps investors to manage their funds, portfolios, and investments online with less human intervention. It collects all the relevant information such as investment timeline, risk tolerance, and returns with respect to their savings from clients through an online questionnaire. It makes use of algorithm calculations to analyze the data and provide comprehensive asset allocation approach that meets with the investor’s goals. The robo-advisor industry has recorded continuous investments for its developments and has become a massive contributor to the economic growth. Although the COVID-19 outbreak is negatively affecting the global economy, SMEs, stock markets, and entire wealth management services, the robo advisory industry has experienced a massive surge, due to higher demand for optimized wealth management during this pandemic.
Robo advisors have evolved to offer increasingly personalized investment recommendations. They consider an investor's financial situation, risk appetite, investment goals, and time horizon to construct a customized portfolio. Robo advisors can provide tailored investment strategies compared to traditional one-size-fits-all approaches by leveraging data analytics and algorithms. This personalization appeals to investors who desire customized solutions aligned with their specific financial objectives. In addition, regulatory changes, particularly in the financial services industry, have aimed to enhance transparency and protect investor interests. In several jurisdictions, robo-advisors adhere to strict compliance guidelines, ensuring that they act in the best interests of their clients. These regulations often require robo-advisors to provide clear disclosure of fees, potential conflicts of interest, and the basis for their investment recommendations. Regulatory frameworks have facilitated the growth of the robo advisory market by fostering trust and accountability.
The key factors driving the growth of the robo advisory market trends include rapid digitalization in financial services, shift in preference from traditional investment services for robo advisory services, and personalized investment solutions. However, increase in security concerns and limited adoption among older investors hampers the growth of the robo advisory market. On the contrary, technological innovations in digital investment platforms and rise in adoption of digital platforms and mobile devices are expected to provide lucrative opportunities for the robo advisory market expansion during the forecast period.
The robo advisory market is segmented into business model, provider, service type, end user, and region. By business model, the market is fragmented into pure robo advisors and hybrid robo advisors. By service provider, the market is divided into fintech robo advisors, banks, traditional wealth managers and others. By service type, the market is categorized into direct plan-based/goal-based and comprehensive wealth advisory. By end user, the market is bifurcated into retail investor and high net worth individuals (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 Fincite GmbH, Betterment, Charles Schwab & Co., Inc., SigFig Wealth Management, LLC, Social Finance, Inc., Wealthfront Corporation, Wealthify Limited, The Vanguard Group, Inc., Ginmon Vermögensverwaltung GmbH, and Axos Financial, Inc. These players have adopted various strategies to increase their market penetration and strengthen their position in the industry.
Key Benefits for StakeholdersThe study provides in-depth analysis of the robo advisory market along with current trends and future estimations to illustrate the imminent investment pockets.
Information about key drivers, restrains, & opportunities and their impact analysis on the robo advisory market size are provided in the report.
The Porter’s five forces analysis illustrates the potency of buyers and suppliers operating in the industry.
The quantitative analysis of the robo advisory market from 2022 to 2032 is provided to determine the market potential.
Key Market SegmentsBy Service TypeDirect Plan-based/Goal-based
Comprehensive Wealth Advisory
By Business ModelPure Robo Advisors
Hybrid Robo Advisors
By ProviderFintech Robo Advisors
Banks
Traditional Wealth Managers
Others
By End UserRetail Investor
High Net Worth Individuals (HNIs)
By RegionNorth America
U.S.
Canada
Europe
UK
Germany
France
Italy
Spain
Rest of Europe
Asia-Pacific
China
Japan
India
Australia
South Korea
Rest of Asia-Pacific
LAMEA
Latin America
Middle East
Africa
Key Market Players
Axos Financial, Inc.
Betterment
Charles Schwab & Co., Inc.
Fincite Gmbh
Ginmon Vermögensverwaltung GmbH
SigFig Wealth Management, LLC
Social Finance, Inc.
The Vanguard Group, Inc.
Wealthfront Corporation.
Wealthify Limited
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