Automated Financial Advice Set to Dramatically Disrupt the Investment Market

LONDON, August 3, 2016/
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 (http://www.thebusinessresearchcompany.com/our-research/finance/robo-advice-revolution-or-evolution/) 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.

US Market Leads the Way -
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.

Customer Focus Is Key -
The Robo Advice report (http://www.thebusinessresearchcompany.com/our-research/finance/robo-advice-revolution-or-evolution/) 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.

From Robo Advice to Artificial Intelligence -
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.

Dead as a Robo?
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 (http://www.thebusinessresearchcompany.com/our-research/finance/robo-advice-revolution-or-evolution/) 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.

Reasons to Purchase The Report

• Develop strategies based on what robo advice is and what it means in today’s market.
• Choose your approach to the market based on the industry’s emerging business models.
• Plan innovative strategies based on the ‘What Will The Winners Look Like’ section.
• Facilitate decision making on the basis of forecast market data.
• Benchmark performance against key competitors by understanding their market positioning, offerings, portfolios and workflows.
• Identify investment opportunities.
• Target your key markets with detailed market, competitive, regulatory and trend information for the US, UK, European and Australian markets.
• The report supports your internal and external presentations with reliable high quality data, analysis and 50 attractive and informative graphics.

• To ask for further information or purchase the report please click here or follow the link below:
http://www.thebusinessresearchcompany.com/our-research/finance/robo-advice-revolution-or-evolution/

Scope

• 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, Clover.com.au, 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.

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.
http://www.ignitionhouse.com/contact.html

The report’s authors included Janette Weir, Edward Ripley and Damon Guirdham.
Janette has more than 20 years research experience and brings a broad range of research and consultancy skills to her work. She is an economist by training, having started her career as an economist at the UK’s Department for Work and Pensions where she spent five years advising ministers and policy makers. She moved to be Chief Economist at the Association of British Insurers. From there, she led a team of analysts covering all aspects of Financial Services as Head of UK Financial Services Research at McKinsey and Company. Now Managing Director of Ignition House Ltd, she has built a solid financial services practice working for a variety of public and private sector clients.

Edward, Research Director at Ignition House, has over ten years’ experience working in the market research and advisory industry as Director for Corporate Strategy and New Business Development at the Corporate Executive Board and Lead Analyst for the Retail Banking team at Datamonitor.

Damon has over 20 years of business analysis and investment management experience giving him a deep knowledge of the financial sector. Most recently Damon was a Partner at Generation Investment Management, a multi billion dollar asset manager. Prior to this he spent nine years at Morgan Stanley as an Investment Analyst/Head. Damon started his career as a graduate trainee with Schroders after obtaining his M.A. from Oxford University.

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.

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This release was published on openPR.