Robo Advice: Revolution or Evolution? Including: Robo Advice, Automated Financial Planning, Financial Advice, Brokerage, Fund Platforms Covering: Australia, Europe, Uk, Usa

Low cost, automated investment advice is set to become the core of financial planning services, with a market potential of $19.5 trillion assets under management, according to a new report by Ignition House, the financial services experts, and The Business Research Company. The ‘Robo Advice: Revolution or Evolution?’ report demonstrates that as awareness of automated financial services options increases and assets under management grow, many consumers and institutions will want to move away from expensive traditional investment advice into low-cost automated options. This will initially be driven mainly at the corporate level, with large institutional client wins by robo offerings. Consumer-focused services will come later.

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“The robo advice market is set for explosive growth, and we at Ignition House are excited to be the goto authority tracking its development” commented Janette Weir of Ignition House, one of the report’s authors.

US Market Leads the Way

The report shows that the current market for robo advice is dominated by the USA, with an estimated $1.2 trillion under management. The USA's favourable regulatory environment, high propensity to save in equities and the size of its retirement savings market all mean that the USA is the most promising market for robo advice.   India and China present long term opportunities but continue to be tied to traditional property, gold and money market fund investments. In Europe the UK looks set for growth, with major pension funds available for investment and a positive environment for fintech.

Customer Focus Is Key

The Robo Advice report gives providers many ideas on how to develop their offerings going forward, with best practice examples from companies leading the market. It highlights...