Pune, India., Sept. 15, 2023 (GLOBE NEWSWIRE) -- Within the Asia Pacific, dramatic changes in the wealth management landscape are driving wealth managers and private banks to re-evaluate and modernize their existing operating models. As technology companies increasingly become critical distribution platforms for wealth management products and services, robo-advisors are gaining huge traction. Strong consumer appeal, a rapidly rising middle class, and a shift towards investment products are some factors driving the Robo-Advisory market growth in China. According to PrivateBanker International, Chinese investors are more likely to use automated investment services. In contrast, only 4.2% of Chinese consumers use a robo-advisor as their primary investment provider, almost double the global average of 2.3%. And the proportion of individuals who have at least tried a robo-advisor stands at 31.8% in China, compared to 13.7% on a global scale. In addition, new entrants face competition from China’s big tech giants, such as Ant Financial and Ping An-backed Lufax, and start-ups like WaCai. And the country’s big banks, such as China Merchants Bank, have developed their robot platforms. All such factors contribute to the Robo-Advisory market growth in China.
Robo-Advisory Market in terms of revenue was estimated to be worth $6.88 billion in 2022 and is poised to reach $61.51 billion by 2030, growing at a CAGR of 44.1% from 2022 to 2030 according to a new report published by The Insight Partners.
The growth of the Robo-Advisory market is driven by the increase in penetration of smartphones and the increase in request for automated investment solutions. However, increased security concerns are expected to hinder the Robo-Advisory market growth.
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Browse Comprehensive TOC on "Robo-Advisory Market Size and Forecasts (2020 - 2030), Global and Regional Share, Trends, and Growth Opportunity Analysis by Type (Automated Robo-Advisors, Hybrid Robo-Advisors); Application (Automated Financial Planning, Financial Advice, Brokerage, Fund Platforms, Others) and Geography"
Global Robo-Advisory Market Scope:
| Report Coverage | Details |
| Market Size Value in | USD 6.88 Billion in 2022 |
| Market Size Value by | USD 61.51 Billion by 2030 |
| Growth rate | CAGR of 44.1% from 2022 to 2030 |
| Forecast Period | 2022-2030 |
| Base Year | 2022 |
| Segments covered | Type, Application, and Geography |
| Regional scope | North America, Europe, Asia Pacific, Middle East & Africa, South & Central America. |
| Country scope | Argentina, Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, Mexico, Russian Federation, Saudi Arabia, South Africa, South Korea, United Arab Emirates, United Kingdom, United States |
| Report coverage | Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends |
Robo-Advisory platforms provide various choices for fast, clear & scientific investment advice. The rise of the investor class of technology-savvy professionals who prefer digital & automated advice for managing their investments is increasing in India. In recent years, quite a few companies have started operations in the Robo-Advisory space. According to Tracxn, at present, there are 39 Robo-Advisory companies in India. Approximately ten of 39 fintech companies have announced receiving funding in the Robo-Advisory domain. The very early entrant was FundsIndia.com. FundsIndia is one of the largest Robo-Advisory firms in India. The company has received US$15.41 million from Foundation Capital, Inventus Capital Partners & Faering Capital. The other Robo-Advisory companies that have received substantial funding include MyUniverse and Scripbox. Automated financial advisory services are kicking up the action in India. All such factors provide lucrative growth opportunities for the Robo-Advisory market growth in India.
A robo-advisor a technology-heavy alternative to trade stocks and commodities yourself in Germany. The main robo-advisors in Germany are Scalable Capital, Whitebox, Quirion, Liqid, fintego, and Growney, among others. According to BankingHub, there are currently around 30 robo-advisors. From an international perspective, the number of German robo-advisors is thus quite large. Despite their large number, providers in Germany currently only manage relatively limited asset volumes compared to international standards. The German Robo-Advisory market is increasingly becoming concentrated and competitive as Robos’ assets under management have been growing quickly in Germany.
Furthermore, financial technology (FinTech) advances have enabled full automation in various asset management services, from client onboarding to portfolio management and the rebalancing of these portfolios. The combination of these automated services provided by robo-advisors is often regarded as an innovation in asset management with significant growth potential for the Robo-Advisory market in Germany. In addition, there is growing interest in providing robo-advisory services from start-up German FinTech firms to traditional banks and established asset management companies. Germans are also increasingly using financial technology. For instance, 20% of Germans have a financial app on their smartphone. All such factors contribute to the Robo-Advisory market growth in Germany.
The number of robo-advisors is steadily increasing as these robo-advisory services are becoming more popular worldwide. Robo-advisors facilitate investing by minimizing research time, removing emotions when selecting investments, and automating the portfolio management process. The number of robo-advisors in the UK is increasing at a rapid pace. Some of the best robo-advisors in the UK are Moneyfarm, Nutmeg, InvestEngine, Clim8, Wealthify, IG Smart Portfolio, and eToro. All such factors contribute to the Robo-Advisory market growth in the UK.
Rapid Digitalization In Financial Services Provides Lucrative Opportunities for Global Robo-Advisory Market:
The financial services industry is currently in the midst of a transformation as industry players prepare to embrace the next major phase of digital transformation. Customers nowadays expect the same level of convenience and accessibility from financial services compared to other online services. To meet these requests and stay competitive, banking institutions are facing the need for digital transformation. The financial sector can boost innovation and entrepreneurship through digitalization and support transition. Digital transformation enables businesses to create more and more new opportunities, increase efficiency, and improve the customer experience. Furthermore, countries' financial services sector promotes economic growth and pro-employment macroeconomic conditions. Digital finance also creates opportunities to develop better banking and financial products and services for consumers and creates new ways of channeling funding to businesses, thus improving the financial sector. For instance, since the lockdown, there has been a 72% rise in the use of fintech apps in Europe. Digital transformation has caused organizations to invest more in platforms, further providing lucrative opportunities for Robo-Advisory market growth.
Furthermore, increasing digitization promotes the adoption of advanced technologies such as artificial intelligence (AI), machine learning (ML), and data analytics. Through artificial intelligence and data, robo-advisors seek more in-depth information. They analyze financial activities such as investment, bank, and credit card transactions to determine the investor's true financial behavior. Moreover, integrating AI technologies into hybrid robo-advisory platforms can further enhance portfolio management, risk assessment, and personalized financial advice. Many enterprises have started leveraging use AI in the robo-advisory field. Betterment is one of these robo-advisor enterprises that uses AI to reduce taxes on transactions where machine learning algorithms select the specific tax consequences of the transactions. Similar to Betterment, SigFig also uses its AI engine automatically to allocate assets and determines which investments will result in minimum taxes.
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Global Robo-Advisory Market: Segmental Overview
Based on application, the Robo-Advisory market is segmented into automated financial planning, financial advice, brokerage, fund platforms, and others. Robo-advisors provide financial planning services through automated algorithms with no human intervention. The larger an organization, the greater the need for better financial planning and analysis. Any delays or mistakes in financial planning could lead to severe consequences. Many organizations are struggling to meet these expectations in the financial planning process. Thus, Robo-Advisory services are increasingly used for automated financial planning, contributing to the segment’s growth in the Robo-Advisory market.
Global Robo-Advisory Market: Competitive Landscape
AXOS INVEST, INC.; BETTERMENT LLC; CHARLES SCHWAB AND CO., INC.; FUTUREADVISOR; HEDGEABLE, INC.; NUTMEG SAVING AND INVESTMENT LIMITED; PERSONAL CAPITAL CORPORATION; SIGFIG WEALTH MANAGEMENT, LLC; THE VANGUARD GROUP, INC.; WEALTHFRONT CORPORATION are a few of the key companies operating in the Robo-Advisory market. The robo-advisory market leaders focus on new product launches, expansion and diversification, and acquisition strategies, which allow them to access prevailing business opportunities.
Global Robo-Advisory Market - Key Industry Dynamics:
Drivers:
- Increased request for personalized investment solutions
- Surge in adoption of digital platforms and mobile devices
Restraints:
- Increase in security concerns
Opportunities:
- Rapid digitalization in financial services
Future Trends:
- Rising adoption of advanced technologies such as Artificial Intelligence (AI), Machine Learning (ML), and Data Analytics
Recent Developments:
- In January 2023: M&G Wealth announced the launch of a hybrid robo-advisor. This new platform uses an algorithm to determine each customer's risk appetite, financial knowledge and financial situation. Available as an app on Android and iOS and a web application, the platform provides investors with access to a choice of 'classic' and 'targeted' portfolios. Such product launches are anticipated to support the Robo-Advisory market growth.
- In March 2022: flatexDEGIRO AG, Europe's largest and fastest-growing online broker for retail investors, announced the signing of a Memorandum of Understanding (MoU) to extend its long-standing B2B partnership with digital wealth manager Whitebox, one of the independent robo-advisors for retail investors. Together, flatexDEGIRO and Whitebox offer a fully digital investment solution to flatexDEGIRO's customers. Such partnerships are anticipated to flourish the Robo-Advisory market growth.
Go through further research published by The Insight Partners: (Purchase with 10% Instant Discount):
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