Research from data and analytics company GlobalData’s Wealth Managers Survey found that the robo-advisory market is increasing in competition globally, with more start-ups entering the wealth management industry year by year.
According to GlobalData wealth management analyst Sergel Woldemicheal, traditional wealth managers across the globe in previous years had a widespread level of agreement that robo-advice would seize market share.
“However, as of 2018, the level of agreement that Asian-Pacific and European wealth managers will lose market share to robo-advisers is beginning to align,” Mr Woldemicheal said.
“For traditional wealth managers to reduce the risk of losing market share, they would benefit from introducing a digital investment platform.”
I don’t consider that the traditional advice space is losing market share in the wealth management due to robo-advice, but moreso that robo-advice has opened up wealth management to individuals who would have previously not been able to invest. This may be down to an individual’s lack of understanding of investing, individual balance (which would not be seen as worthwhile for an adviser when they have to take into account compliance and time taken to provide said advice). I see this as a good thing!
this is a good thing. it engages lots of clients very early. at present, only 20% of the population seek financial advice. making it easy and affordable and growing the segment means that there will be lots more people already engaged and willing to work with a human financial planner later on.
go robo go