Robo Advisory Market Growth & Trends
The global robo advisory market size is expected to reach USD 41.83 billion by 2030, growing at a CAGR of 29.7% from 2022 to 2030, according to a new study conducted by Grand View Research, Inc. The growing use of smartphones coupled with the increased applications of chatbots on various investment and e-commerce platforms worldwide is anticipated to drive the demand for robo advisory during the projected period. In addition, the increasing awareness of digital investment consultation services is expected to drive market growth during the forecast period.
Robo-advisory includes algorithm and automated driven financial planning with little human involvement. Additionally, through an online survey, the robo-advisor gathers financial information from clients, such as their current financial position and future financial goals. Furthermore, using this information, robo advisors offer clients certain benefits such as quick account setup, portfolio management, and security features. Such factors are anticipated to drive the market in the near future.
Numerous emerging economies are encouraging regional players to improve their testing and research into robo-advisory services. Such initiatives are also expected to stimulate market growth. For instance, in August 2019, the Saudi Capital Market Authority (CMA) gave Haseed Investing Company and Wahed Capital authorization to test their robo-advisory services. This strategy is to promote the use of financial technology in the Arab market.
The pandemic has contributed positively to the market growth, thereby driving the demand for robo advisors in the near future. Several businesses have reported increased digital consulting activity in the first quarter of 2020. For instance, in April 2021, Betterment reported an increase in account openings by over 25% due to the COVID-19 pandemic These factors are expected to fuel the market growth during the forecast period.
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