Robo Advice set to Dramatically Disrupt the Financial Investment Market With Automated Advice, Says New Report From Ignition House

Aug 02, 2016, 09:00 ET from Ignition House and The Business Research Company

LONDON, August 2, 2016 /PRNewswire/ --

Low-cost, automated investment advice is set to become the core of financial planning services, with a market potential of $19.5 trillion assets under management, according to a new report by Ignition House, the financial services experts, and The Business Research Company. The 'Robo Advice: Revolution or Evolution?' report demonstrates that as awareness of automated financial services options increases and assets under management grow, many consumers and institutions will want to move away from expensive traditional investment advice into low-cost automated options. This will initially be driven mainly at the corporate level, with large institutional client wins by robo offerings. Consumer-focused services will come later.

"The robo advice market is set for explosive growth, and we at Ignition House are excited to be the go-to authority tracking its development," commented Janette Weir of Ignition House, one of the report's authors.

  • To ask for further information or purchase the report please click here or follow the link below:

The report shows that the current market for robo advice is dominated by the USA, with an estimated $1.2 trillion under management. The USA's favourable regulatory environment, high propensity to save in equities and the size of its retirement savings market all mean that the USA is the most promising market for robo advice. India and China present long term opportunities but continue to be tied to traditional property, gold and money market fund investments. In Europe, the UK looks set for growth, with major pension funds available for investment and a positive environment for fintech.

The robo advice report gives providers many ideas on how to develop their offerings going forward, with best practice examples from companies leading the market. It highlights the importance of targeting specific investment niches, creating a simple, differentiated offering that consumers can understand. Customer-centred approaches will be needed in order to retain customers in such a competitive market. This lesson is yet to be learned: few providers employ Heads of Customer Experience to manage this. Visual stimulus and gamification are ways that companies can increase differentiation and engagement.

The report argues that robo advice is still in its infancy, and the market will look very different going forward. Industry commentators' consensus is that developments in artificial intelligence and virtual mean that we are less than five years from automated solutions capable of addressing many of today's financial advice needs. In this new era, they envisage systems learning from each interaction, facilitating more tailored solutions, and encouraging people to share more information. In future Amazon-like recommendations ('people like you also did this') will be commonplace and systems will 'know' when life events occur that trigger new financial needs (getting married, having a baby) by mining personal information from social media.

Over 200 companies can be categorized as robos, after huge numbers of service launches over the last three years, but many of these will fail, according to the report. The vast majority of automated investment management offerings are point-in-time, 'me-too' product solutions. With little to differentiate them and competition increasing by the day, consolidation and contraction of this part of the market seems inevitable.

About the Robo Advice: Revolution or Evolution? Report  

The Robo Advice: Revolution or Evolution? report provides strategists, marketers and senior managers with the critical information they need to assess the rapidly developing market for automated investment and financial advice. Robo advice is one of the most important trends in the financial advice market, and this report gives a comprehensive assessment of the market based on discussions with all the leading players globally.

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  • Markets Covered: robo advice, automated financial planning, financial advice, brokerage, fund platforms
  • Companies profiled: Betterment, Financial Guard, FutureAdvisor (a BlackRock Company), Intelligent Portfolios from Charles Schwab, Inc., LearnVest Inc., Personal Capital, SigFig Wealth
  • Management LLC, Vanguard PAS, Wealthfront, Inc, WiseBanyan, Inc, Easy Folio, eValue (Investment Solutions), Fintego Managed Depot, Ginmon GmbH, Marie Quantier, MoneyFarm, Nutmeg Savings & Investment Limited, Parmenion (Aberdeen Asset Management), Quirion (Quirin Bank AG), Scalable Capital, True Wealth Inc., vaamo Finanz AG, Wealthify, Wealth Objects Limited, Wealth Wizards, Yomoni,, Decimal Software Ltd, Ignition Wealth (Ignition Direct), QuietGrowth, Stockspot.
  • Geographies: USA, Europe, UK, Australia.
  • Time series: Current and five years forecast assets under management.
  • Infographics: Fifty high-quality conceptual and data driven illustrations.
    Analysis: Definitions and segmentations, business models, success factor analysis, market drivers, market background, competitive and regulatory characteristics. Company positioning, developments and workflow analysis.
  • Research: The report is based on 25+ interviews with many of the leading players in the global robo advice market. It draws on exhaustive secondary research.
  • Authors: The report's authors draw on over 60 years of collective senior research experience in the financial and technology sectors.

About The Publishers 

The report's authors included Janette Weir, Edward Ripley and Damon Guirdham who combine over 60 years of experience in senior research positions with organisations such as Association of British Insurers, McKinsey and Company, Morgan Stanley and Datamonitor.

Ignition House offers high quality, insightful and actionable research to a range of public and private sector clients executed by experienced, expert people. It is a leading authority on the developing robo advisory market, offering a range of research and advisory services to leading competitors. Click here or follow the below link to contact us.

The Business Research Company is a market research and intelligence company which excels in company, market and consumer research. It has research professionals at its offices in the UK, India and the USA as well a network of trained researchers globally. It has specialist consultants in a wide range of industries including manufacturing, healthcare, financial services and technology.

Click here or follow the link below to contact us.

Media Contact:
Joseph Birch

SOURCE Ignition House and The Business Research Company