Have Roboadvisors "Jumped the Shark?" -- Six Predictions from Silver Lane
NEW YORK, Oct. 28, 2015 /PRNewswire/ -- "Jumping the shark." It's an idiom rooted in American pop culture that signifies the precise moment at which a hot trend has peaked and has started to lose steam. Perhaps no trend in financial services has garnered more attention over the past two years than the explosion of roboadvisors (or low-cost, automated investment advisory services), with countless media articles describing robos as "the next big thing" to shake up the investment world.
Industry expectations are building. Some forecasters expect robos to grow 10-fold to more than $2 trillion of AUM in the next five years by undercutting industry pricing as much as 75%. But even as new entrants continue to pile into the market, AUM remains small; consolidation has begun; and industry behemoths have started to leapfrog the start-ups.
Has a shakeout begun? Has the independent robo trend jumped the shark? If not, what might cause these fintech disrupters to lose footing? Are there any history lessons that the flurry of media interest has neglected to consider? Silver Lane Advisors ("Silver Lane"), a premier M&A advisor to the financial services industry, pioneers new ground in a 20-page white paper released today.
Silver Lane advances the industry debate by revisiting a forgotten chapter in fintech history -- illustrating how and why selected fintech disrupters historically failed to build sustainable businesses despite massive adoption of their technologies. The white paper then highlights a striking resemblance between some of these failed strategies and the underlying thesis of today's independent roboadvisors, and concludes with six predictions about the future of roboadvisors.
To download the free, 20-page white paper, please visit http://www.silverlane.com/published.php.
About Silver Lane
Silver Lane is a premier investment bank that specializes in the financial services industry. With offices in New York, San Francisco, and Chicago, the firm serves a broad range of financial services clients, including asset and wealth management firms, private and commercial banks, securities firms, trust and insurance companies, and financial technology platforms.
Media Contact:
Janice Maddalone
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Web: www.silverlane.com
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SOURCE Silver Lane
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