Technological advancement has a big impact on the Robo advising sector. The efficiency of Robo-advisory is anticipated to rise with the development of technology in fields like advanced analytics, artificial intelligence, and natural language processing. As a result, robo-advisors will be able to improve their value offer and have a bigger impact on the entire value chain. For instance, US-based Robo advising company Unifimoney Inc. announced a partnership with Quantel AI Inc. to introduce AI-based robo-investment solutions as a part of the Unifimoney investing platform. These solutions will assess the risk profile and stated goals using Quantel's in-house AI engines and offer recommendations on the best portfolio to match the customer's objectives.
Since the outbreak of COVID-19, combined with the ongoing oil-price war, investors and equity markets around the world have been rattled. Stock indices have seen a percentage drop from their peak less than one month ago, suffering their worst days since previous years, and investors are moving from equities to Ten year notes, causing US Treasury rates to drop to record lows. Falling markets put Robo-Advisors - a new market entrant since the previous year’s Great Recession - to the test yet again.
The COVID-19 pandemic is expected to significantly drive market growth during the forecast period. The pandemic has increased global demand for digital financing, robo advisors, financial planning solutions services, and investment management. Several companies have reported increased digital investment activity in the first quarter of 2020. For example, Interactive Investor, a U.K.-based broker firm, reported an Exclusively increase in the number of individual savings accounts opened on its platform in April 2020 compared to the previous year.
Robo-Advisory Software Market Key Players:
The market study provides market data by competitive landscape, revenue analysis, market segments and detailed analysis of key market players such as; Betterment; Fincite GmbH; Wealthfront Corporation; The Vanguard Group, Inc.; Charles Schwab & Co., Inc.; Ellevest; Ginmon Vermögensverwaltung GmbH; Wealthify Limited; Social Finance, Inc.; SigFig Wealth Management.
Global Robo-Advisory Software Market Segmentation:
By Type: Based on the Type, Global Robo-Advisory Software Market is segmented as; Pure Robo-Advisor and Hybrid Robo-Advisor.
By Provider: Based on the Provider, Global Robo-Advisory Software Market is segmented as; Fintech Robo Advisors, Banks , Traditional Wealth Managers , Others.
By Service Type: Based on the Service Type, Global Robo-Advisory Software Market is segmented as; Direct Plan Based/Goal Based, Comprehensive Wealth Advisory.
By End-Use: Based on the End Use, Global Robo-Advisory Software Market is segmented as; Retail Investor, High Net Worth Individual.
By Region: North America dominated the market in previous year, accounting for more than quarter of the total. The presence of several prominent players, including Betterment.com, the Vanguard Group, Inc., and others, is expected to drive the growth of the US robo advisory market. For example, The Vanguard Group, Inc. announced the launch of robo-advice services. The service, according to the company, is intended to eliminate human intervention, thereby minimising errors and performing quick calculations.
During the forecast period, Asia Pacific is expected to grow significantly. The growing consumer awareness of the benefits of using automated financial assistance for savings and investments can be attributed to the regional market's growth. Several firms across Asia Pacific are promoting the use of robo advisory, which is expected to contribute to regional growth. For example, in last year, TradeSmart, one of India's leading new-age online discount brokerage firms, announced a partnership with Modern Algos to provide AI-powered advisory services. This platform includes artificial intelligence to provide users with an efficient order management system. It employs in-depth insights based on algorithms to ensure they receive appropriate customised advice based on their age, Investment and Future Goals.
This study also encompasses various drivers and restraining factors of this market for the forecast period. Various growth opportunities are also discussed in the report.