Robo Advisory Market Trends

Growth Drivers

• Growing Number Of Internet Users And The Rise In Internet Penetration
  According to International Telecommunication Union (ITU), number of individuals using the internet grew from 1100 million in 2005 to 3924 million in 2018 and is further estimated to reach 4131 million by 2019.
  Increasing penetration of the internet worldwide and rise in the number of internet users is helping financial advisory companies to promote their advices related to investments, and further connect to the customers with mutual engagement and trust. Robo advisory services platform run on the back of internet technology infrastructure and requires its clients on the other end to equally associate into their platform via the internet. Such a factor also helps to significantly decrease the management cost of the financial wealth services providing company involved in providing financial advice through manpower, and thereby provide robo advisory services to clients at a minimal cost.
• Increase in the Maturity of Digital Advice Technologies
  Advancement in digital technology is helping to transform numerous industries worldwide. Several market forces are driving the need amongst organizations to transform digitally, such as, emergence of new ecosystems accessible through digital channels, reduced barriers to digital entry, reduced ownership of assets and infrastructure, and decoupled value chains among others. Financial advisory companies are adopting to technologies, such as, artificial intelligence (AI) on the back of the ability of the technology to think and act almost like humans and further continuously learn and use the knowledge to solve complex problems. This in return help the companies gain an extra competitive edge to serve their customers and enhance the delivery of advice. Moreover, with the adoption of the robo advisory technology, consumers find increased transparency into investment options and decisions. Furthermore, consumers can also access via the web or mobile apps to build diversified portfolios at minimal fees. Such factors are anticipated to drive the growth of the robo advisory market throughout the forecast period.

Challenges

• Conflicts of Interests of the Clients
  Rising concern amongst consumers for the definition and suitability of the financial advices, which may create a conflict of interests among the clients is anticipated to hinder the growth of the market during the forecast period.