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Robo-Advisors Report 2014

Robo-Advisors: Threats and Opportunities for the Global Wealth Management Industry

Sep. 15, 2014

The 2014 report on robo-advisors: comprehensive, data-driven, rigorous

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Even though robo-advisors are only just getting started as players in the wealth management industry, their presence is likely to be the cause of severe turbulence for traditional wealth managers and the industry as a whole. There are already sensitive areas where robo-advisors have clear advantages in attracting clients. These include low fees, attractive self-assessment tools, rapid enrolment and the widespread availability of portfolio rebalancing. The robo phenomenon is here to stay and the opportunities and the dangers presented by robo-advisors to conventional wealth managers can be summed up in the single word ‘technology’. This rigorous and detailed report tells you all you need to know for assessing the strengths and weaknesses of the leading robo-advisors worldwide and the implications of robo-advisors for conventional wealth managers.

This 121-page report has identified 14 leading robo-advisors who offer automated investment services such as algorithm-based risk assessment, automated portfolio selection, and automatic portfolio rebalancing. It analyzes in detail the strengths and weaknesses of each of them according to 48 criteria and uses 13 of these to gauge and rank their potential threat to conventional wealth management.

 >>Click here for Table of Contents, Methodology, Executive Summary<< 

At the core of the research are in-depth study of the publicly available interfaces of each of the 14 robo-advisors and interviews with senior management. Additionally the report offers a detailed market sizing model of the amount of the assets under management of robo-advisors worldwide in 2014 and five years from now  together with a chapter outlining 9 best practices. The report was not commissioned by a vendor or bank and has been conducted completely independently.

The report gives wealth managers, robo-advisors, banks, IT-vendors and consultants answers to the following questions:

  • What is the status of the robo-advisors market and how will it develop over the next five years?

  • What are the features, strengths and weaknesses of the solutions for wealth management offered by 14 leading robo-advisors worldwide?

  • Who are the leading robo-advisors that show particularly innovative and/or unique features?

  • Which features and functions should robo-advisor solutions have to satisfy the needs of clients? How should robo-advisors improve their offerings?

  • What are the implications of the robo-advisor model to traditional wealth managers? How can they counter the threats? How can they benefit?

Main Content:

  • Robo-Advisor market size and growth on a global scale and by regions (North America, Europe and Asia-Pacific)

  • 14 comprehensive profiles of robo-advisors (eight of them in the United States and six in Europe) and ranking of their threat potential to conventional wealth management

  • Analysis and evaluation of each robo-advisors solution against 48 characteristics; incl. an assessment of a test drive of the robo-advisors and specific learning points for wealth managers 

  • Analysis of fees of robo-advisors by portfolio size; features of robo-advisors with most disruptive potential; tools to promote enrollment and provision of mobile applications by robo-advisors

  • 9 best practices for features such as self-assessment, client enrolment, account aggregation, portfolio performance and test drive 

  • Recommendations on how robo-advisors can improve the offerings to win more clients

  • Top-ten recommendations for conventional wealth managers to benefit from the opportunities robo-advisors present

  • Comprehensive data appendices with detailed evaluations of the solutions offered by the 14 robo advisors (spreadsheet) and the detailed disruptiveness ranking (spreadsheet)


Analysed Robo-Advisors: 

  Assetbuilder MoneyFarm Quirion WealthFront
  Betterment Money on Toast Rebalance IRA WiseBanyan
  FutureAdvisor Nutmeg Swissquote  
  Jemstep Personal Capital Vaamo  
         

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