Robo Advisor Market overview:
In a recent research report by Reports Insight Consulting Pvt. Ltd, the Robo Advisor Market is expected to surpass USD 72.41 Billion by the year 2028, from USD 8.08 Billion in 2021.
Robo-advisors are digital platforms that offer automated and algorithm-driven financial planning with little to no human interference. They frequently use modern portfolio theory to automate and optimize passive indexing strategies. A typical robo-advisor uses an online survey to ask questions about consumer’s financial situation and future goals. The data is then used to offer advice and automatically invest for the consumer.
The Robo Advisor Market is projected to grow at a significant pace reaching a CAGR of approximately 37.9%, over the forecast period of 2022–2028, despite a considerable fall in product sales during the initial phase of pandemic spread and lockdown restrictions imposed globally.
The study is consolidated into major segments and further into sub-segments, such as by Business Model (Pure Robo Advisors and Hybrid Robo Advisors), Service Provider (FinTech Robo Advisors, Banks, Traditional Wealth Managers, and Others), Service Type (Direct Plan-Based, Comprehensive Wealth Advisory), End-Use (Retail Investor and High Net Worth Individuals), to forecast the market size by value; also includes the analysis of past market dynamics from 2016 – 2021, considering 2021 as the base year.
The End-Use segment is categorized into High-Net-Worth Individuals and retail investors. During the forecast period, High Net Worth Individuals (HNWI) are expected to dominate the market. A growing number of HNWIs expressed measurable interest and desire for enhanced digital and personalized financial planning services.
By region, Asia-Pacific is expected to take second place due to the growing acceptance of digital technologies in the region. Increased digital investment, and several government initiatives for FinTech development in developing countries such as China, India, and Japan is surging the market growth.
Lastly, the report includes a regional analysis and country analysis with the latest trends, along with the major key players including Wealthfront Corporation, Fincite, Betterment, Charles Schwab & Co., Inc., Ellevest, Ginmon Vermögensverwaltung GmbH, SigFig Wealth Management, Social Finance, Inc., Wealthify Limited, THE VANGUARD GROUP,INC.