Dublin, March 22, 2023 (GLOBE NEWSWIRE) -- The "Global Robo Advisory Market Size, Share & Industry Trends Analysis Report by Provider, End-user (High Net Worth Individuals and Retail Investor), Service Type, Type, Regional Outlook and Forecast, 2022-2028" report has been added to ResearchAndMarkets.com's offering.
The Global Robo Advisory Market size is expected to reach $24 billion by 2028, rising at a market growth of 29.9% CAGR during the forecast period.
The term "robo-advisor" refers to the algorithm- and computer-driven financial planning that involves very minimal human intervention. Additionally, the robo-advisor collects financial information from clients through the use of an online survey. This information includes the clients' present financial condition as well as their future financial aspirations. In addition, by making use of this information, robo-advisers can provide their customers with several benefits, including expedited account creation, portfolio management, and safety measures.
Several of the world's fastest-growing economies are putting pressure on regional companies to step up their testing and investigation of robo-advisory services. A subcategory of financial counselors known as robo-advisors or robo-advisers, robo-advisors provide clients with financial advice and administration of their investments online while requiring only moderate to low levels of human participation.
They offer digital financial advice based on mathematical principles or algorithms and supply it to customers. Programmers are responsible for encoding these algorithms into the software once they have been devised by data scientists, investment managers, and financial advisers. Because these algorithms are carried out by software, the provision of financial advice to a customer does not necessitate the involvement of a human adviser.
The program makes use of its algorithms to automatically allot resources owned by customers in a manner that is both manageable and optimized for either short-term or long-term investment. The level of personalization, discretion, engagement and human connection offered by robo-advisors is one of the criteria used to classify these digital financial advisers. There are approximately a hundred different robo-advisory services available.
COVID-19 Impact Analysis
COVID had a good effect on the robo-advisory business. Backend benchmarking, which analyses performance by opening portfolios at top robo-advisors, revealed that the majority of portfolios handled by digital advisors performed similarly throughout market fluctuations.
The number of users on an online wealth management platform or robo-advising in wealth management has doubled as the coronavirus puts an increasing number of advisers into lockdown. From the perspective of wealth management organizations, advisers are managing customers who have been personally and financially impacted by the coronavirus.
Market Growth Factors
Financial services are experiencing rapid digitalization
Digitization has been one of the most commonly embraced solutions in the financial services industry for enhancing core processing capabilities and providing enhanced client services and insights. Moreover, almost fifty percent of financial services have been related to investments. They have been able to reach a big portion of the public that has access to traditional consulting owing to budgetary restraints, so filling this need. In recent years, the financial services business has been modernizing and aiding advising services.
Automated wealth management using digital technology
In businesses such as asset management, banking, and insurance, the digital revolution is changing traditional business landscapes. FinTech, an acronym for financial technology, has evolved as a consequence of the ongoing evolution of technology. The wealth management (WM) business is undergoing profound change. A new generation of investors, molded by new technology and having lived through the last financial crisis, has introduced new criteria for the delivery of investment advice and products.
Market Restraining Factors
The Risk Involved with Robo-advisory Software, such as cyberattacks or IT errors
Robo-advisory software platforms are wholly reliant on technological systems, which might expose investors to possible risk circumstances stemming from cyberattacks or IT malfunctions or outages. If the instrument lacks sufficient protection, hackers may have several opportunities to steal data and funds. Because financial institutions rely on a great deal of vital and secret customer information, it is imperative to guarantee that employees implement the necessary security measures.
Scope of the Study
By Provider
- Fintech Robo Advisors
- Banks
- Traditional Wealth Managers
- Others
By End-user
- High Net Worth Individuals
- Retail Investor
By Service Type
- Direct Plan-based/Goal-based
- Comprehensive Wealth Advisory
By Type
- Hybrid Robo Advisors
- Pure Robo Advisors
By Geography
- North America
- US
- Canada
- Mexico
- Rest of North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Italy
- Rest of Europe
- Asia Pacific
- China
- Japan
- India
- South Korea
- Singapore
- Malaysia
- Rest of Asia Pacific
- LAMEA
- Brazil
- Argentina
- UAE
- Saudi Arabia
- South Africa
- Nigeria
- Rest of LAMEA
Key Market Players
List of Companies Profiled in the Report:
- Wealthify Limited (Aviva plc)
- The Charles Schwab Corporation
- Betterment LLC
- Fincite GmbH
- Wealthfront Corporation
- The Vanguard Group, Inc.
- Ellevest, Inc.
- Ginmon Vermogensverwaltung GmbH
- SigFig Wealth Management, LLC
- Social Finance
For more information about this report visit https://www.researchandmarkets.com/r/istx4d
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