KEY POINTS

  • Robo-advisors — investment products that include any element of automation — continue to disrupt and enhance the wealth management industry. They are increasingly offered by both startups and incumbents, and come in business-to-consumer (B2C) and business-to-business (B2B) form. Most of these solutions promise to streamline the investment process, leading to lower costs and greater transparency for investors. 
  • However, the market is now very crowded, and consumer uptake isn't matching expectations. That's made it difficult for startups with robo-advisor products to attract the assets under management (AUM) they need to build sustainable businesses. As a result, many are being forced to reexamine their strategies, or even pursue additional revenue streams. 
  • BI Intelligence forecasts that robo-advisors will manage around $4.6 trillion by 2022. We've moderated our forecast to account for ongoing weakness in AUM levels in the near term. That said, we expect growth to pick up by the end of the five-year forecast period [...]