Home >  Insights > > FinTech Trends
Oct. 03, 2017
Report: Global Robo-Advisor Benchmarking 2017

Robo-Advisors Remain a Digital One-Trick Pony

Global Robo-Advisor Benchmarking 2017

The global robo-advisor market continues to experience unabated growth. By the end of 2020 more than USD 4 trillion will be managed by robo-advisors and automated investment platforms worldwide. As this trend continues, huge numbers of start-ups and incumbents (established financial institutions offering robo-advice) have recently entered the market for so-called robo-advice. But despite this strong growth, the digital platforms of most robo-advisors have not developed to a point where they can meet the comprehensive needs of their investor and wealth management clients.

The MyPrivateBanking report Global Robo-Advisor Benchmarking 2017 – Mostly a One-trick Pony" analyses and evaluates 31 pure and hybrid robo-advisors from 11 countries show that on average, robo-advisors score only 61% of the maximum achievable benchmarking points. In areas like onboarding, financial planning, client coaching and retention, robos simply cannot live up to the required standards of digital wealth management. Only in the area of portfolio management does the report identify a satisfactory performance (81%). The report provides a strategic analysis of the current level of robo-advisor deployment and in-depth insights on the market’s trends and developments from the interviews MyPrivateBanking’s analysts conducted with executives of robo-advisors and industry experts.

The 31 robo-advisors featured in the report were purposely selected to achieve a balance in the following ways: global coverage, provision for different investor market segments, pure as opposed to hybrid robos, and standalone platforms and those provided by large institutions or third-party specialists. The offerings, strengths and weaknesses of each robo-advisor are individually profiled and scored for the quality of their onboarding, financial planning, portfolio management, client coaching and client retention and engagement features.

Click & Invest, Schwab Intelligent Portfolios and Intelligent Advisory and Scalable Capital top the ranking

MyPrivateBanking’s ranking of 31 robo-advisors from 11 countries awarded the highest scores to these three platforms:

  • Click & Invest (UK) – thanks to outstanding performance in the areas of portfolio management and client coaching (76.5% of maximum achievable points)

  • Schwab Intelligent Portfolios and Intelligent Advisory (US) – for the provision of complementary tools that ensure maximum capabilities in financial planning and impressive results in portfolio management and client retention and engagement (76.5%)

  • Scalable Capital (Germany) – one of the few players with convincing client coaching and a remarkable score in the area of client retention and engagement (76.3%)

The report offers the full ranking of the 31 robo-advisors, including a data appendix detailing the findings for each of the more than 50 benchmarking criteria applied. The results are further illustrated by 15 best practices of leading robo-advisors’ digital strategies/capabilities in areas such as onboarding tools, risk assessment, portfolio simulations, engaging and educational content, client retention and mobile features.

The robo-advisor landscape is diversifying

This year, MyPrivateBanking observes that the robo-advisor landscape is diversifying, with firms focusing more on financial planning while others put more effort into traditional wealth management. Incumbent banks are now entering the market with their own solutions, turning up the heat for standalone robos and start-ups. The report identifies the various players’ strategic focuses and outlines the implications of this changing landscape for established banks, asset and wealth managers, and new providers of automated investment services.

In addition to the robos targeting the end consumer, MyPrivateBanking sees a growing trend of B2B robo-advisors, which is another disruptive force in the robo-advisor market. Software companies and standalone robos are licensing their technology to incumbents, allowing them to bring their automated advice offer to the market. The most prominent examples with their offerings and benefits are featured in this report and some of the most interesting B2B players and partnerships are identified.

Overall, these developments will lead to heated competition in the market and only those players with the highest level of excellence in digital capabilities will survive. This report offers a detailed and comprehensive look at leading robo-advisors and automated investment services worldwide, identifies the best, and derives highly valuable learning points. It analyzes what is necessary to succeed as a robo-advisor and how traditional financial services firms can react to the ever-growing robo-advisor challenge. And finally, it offers a series of recommendations for robo-advisors - standalone as well as those who are part of an established financial services provider – to ensure they will be on the winning side in the future.

 

About the report:

The report “
Global Robo-Advisor Benchmarking 2017 – Mostly a One-trick Pony analyzes in detail the strengths and weaknesses of the websites, mobile and social media offerings of 31 pure and hybrid robo-advisors worldwide according to 48 and 51 criteria respectively, under the following headline topics: client onboarding, financial planning, portfolio management, client coaching, client engagement & retention, best practices. In addition, this report includes profiles of seven B2B providers, 20 best practices showing the robos’ most interesting features for all functional areas, and in-depth insights on the market’s trends and developments from the interviews MyPrivateBanking’s analysts conducted with industry experts. More info on report.

 

Analyzed Robo-Advisors:

Americas: Betterment, BMO SmartFolio, Capital One Investing, Hedgeable, Magnetis, Nest Wealth, Personal Capital, Schwab Intelligent Portfolios, Vanguard, Wahed, Wealthbar, Wealthfront, Wealth Simple.

Europe: Click & Invest, Fintego, Ginmon, Indexa Capital, LIQID, Moneyfarm, NetWealth, Nutmeg, Scalable Capital, True Wealth, UBS SmartWealth, Vaamo, VZ Finanzportal, Wealth Horizon, WeSave.

Asia-Pacific/Africa: 8 Securities Chloe, Smartly, Sygnia

B2B Automated Investment Solution Providers: 8 Securities, Bambu, Betasmartz, Ignition Wealth, InvestCloud, Vaamo, Polaris

 

My Private Banking



Report: Global Robo-Advisor Benchmarking 2017

Robo-Advisors Remain a Digital One-Trick Pony

  Oct. 03, 2017

Global Robo-Advisor Benchmarking 2017

The global robo-advisor market continues to experience unabated growth. By the end of 2020 more than USD 4 trillion will be managed by robo-advisors and automated investment platforms worldwide. As this trend continues, huge numbers of start-ups and incumbents (established financial institutions offering robo-advice) have recently entered the market for so-called robo-advice. But despite this strong growth, the digital platforms of most robo-advisors have not developed to a point where they can meet the comprehensive needs of their investor and wealth management clients.

The MyPrivateBanking report Global Robo-Advisor Benchmarking 2017 – Mostly a One-trick Pony" analyses and evaluates 31 pure and hybrid robo-advisors from 11 countries show that on average, robo-advisors score only 61% of the maximum achievable benchmarking points. In areas like onboarding, financial planning, client coaching and retention, robos simply cannot live up to the required standards of digital wealth management. Only in the area of portfolio management does the report identify a satisfactory performance (81%). The report provides a strategic analysis of the current level of robo-advisor deployment and in-depth insights on the market’s trends and developments from the interviews MyPrivateBanking’s analysts conducted with executives of robo-advisors and industry experts.

The 31 robo-advisors featured in the report were purposely selected to achieve a balance in the following ways: global coverage, provision for different investor market segments, pure as opposed to hybrid robos, and standalone platforms and those provided by large institutions or third-party specialists. The offerings, strengths and weaknesses of each robo-advisor are individually profiled and scored for the quality of their onboarding, financial planning, portfolio management, client coaching and client retention and engagement features.

Click & Invest, Schwab Intelligent Portfolios and Intelligent Advisory and Scalable Capital top the ranking

MyPrivateBanking’s ranking of 31 robo-advisors from 11 countries awarded the highest scores to these three platforms:

  • Click & Invest (UK) – thanks to outstanding performance in the areas of portfolio management and client coaching (76.5% of maximum achievable points)

  • Schwab Intelligent Portfolios and Intelligent Advisory (US) – for the provision of complementary tools that ensure maximum capabilities in financial planning and impressive results in portfolio management and client retention and engagement (76.5%)

  • Scalable Capital (Germany) – one of the few players with convincing client coaching and a remarkable score in the area of client retention and engagement (76.3%)

The report offers the full ranking of the 31 robo-advisors, including a data appendix detailing the findings for each of the more than 50 benchmarking criteria applied. The results are further illustrated by 15 best practices of leading robo-advisors’ digital strategies/capabilities in areas such as onboarding tools, risk assessment, portfolio simulations, engaging and educational content, client retention and mobile features.

The robo-advisor landscape is diversifying

This year, MyPrivateBanking observes that the robo-advisor landscape is diversifying, with firms focusing more on financial planning while others put more effort into traditional wealth management. Incumbent banks are now entering the market with their own solutions, turning up the heat for standalone robos and start-ups. The report identifies the various players’ strategic focuses and outlines the implications of this changing landscape for established banks, asset and wealth managers, and new providers of automated investment services.

In addition to the robos targeting the end consumer, MyPrivateBanking sees a growing trend of B2B robo-advisors, which is another disruptive force in the robo-advisor market. Software companies and standalone robos are licensing their technology to incumbents, allowing them to bring their automated advice offer to the market. The most prominent examples with their offerings and benefits are featured in this report and some of the most interesting B2B players and partnerships are identified.

Overall, these developments will lead to heated competition in the market and only those players with the highest level of excellence in digital capabilities will survive. This report offers a detailed and comprehensive look at leading robo-advisors and automated investment services worldwide, identifies the best, and derives highly valuable learning points. It analyzes what is necessary to succeed as a robo-advisor and how traditional financial services firms can react to the ever-growing robo-advisor challenge. And finally, it offers a series of recommendations for robo-advisors - standalone as well as those who are part of an established financial services provider – to ensure they will be on the winning side in the future.

 

About the report:

The report “
Global Robo-Advisor Benchmarking 2017 – Mostly a One-trick Pony analyzes in detail the strengths and weaknesses of the websites, mobile and social media offerings of 31 pure and hybrid robo-advisors worldwide according to 48 and 51 criteria respectively, under the following headline topics: client onboarding, financial planning, portfolio management, client coaching, client engagement & retention, best practices. In addition, this report includes profiles of seven B2B providers, 20 best practices showing the robos’ most interesting features for all functional areas, and in-depth insights on the market’s trends and developments from the interviews MyPrivateBanking’s analysts conducted with industry experts. More info on report.

 

Analyzed Robo-Advisors:

Americas: Betterment, BMO SmartFolio, Capital One Investing, Hedgeable, Magnetis, Nest Wealth, Personal Capital, Schwab Intelligent Portfolios, Vanguard, Wahed, Wealthbar, Wealthfront, Wealth Simple.

Europe: Click & Invest, Fintego, Ginmon, Indexa Capital, LIQID, Moneyfarm, NetWealth, Nutmeg, Scalable Capital, True Wealth, UBS SmartWealth, Vaamo, VZ Finanzportal, Wealth Horizon, WeSave.

Asia-Pacific/Africa: 8 Securities Chloe, Smartly, Sygnia

B2B Automated Investment Solution Providers: 8 Securities, Bambu, Betasmartz, Ignition Wealth, InvestCloud, Vaamo, Polaris

 

What does it take to be a Leader in ...

The need for replacing legacy systems with more agi...

How HNWIs Use Banks’ Mobile Apps and...

Our panel survey profiles today’s behavior, attitud...