A significant CAGR of 53.8% during the forecast period of 2018-2023, is anticipated for the global Robo-advisory market, propelling its value to roughly USD 74 Bn, by 2023 – in contrast to its 2015 value of USD 5.9 Bn. A shift in preference towards automation, cost reduction and simplified client experiences will bring this new wave of technology to the fore in the wealth management industry. The hybrid model - an integration of human and robo-advisors – is the most prominent trend being observed in the market.

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Global Robo-advisory Market (2018-2023)
September, 2018
Sample report

2. 2
1.1. Market scope and segmentation
Segments Sub-segments
By product type
By client assets
Pure robo-advisors Hybrid robo-advisors
North America
Europe
Asia-Pacific (APAC)
Latin America (LATAM)
Middle East and Africa (MEA)
By region
Globalrobo-advisorymarket
Pension funds
High-net-worth individuals
(HNWI)
Insurance companies
Mass affluent
Sovereign wealth funds

3. 3
1.2. Key questions answered in this report
Globalrobo-advisorymarket
 What is the market scope and segmentation of the global robo-advisory market?
 What is the historical, current and forecasted market size data for the global robo-advisory
market, by revenue?
 What are the drivers and challenges of the global robo-advisory market?
 What are the market trends that are instrumental in the growth of the robo-advisory
market?
 What is the historical, current and forecasted market size data for the global robo-advisory
market, by revenue, for segment 1?
 What is the historical, current and forecasted market size data for the global robo-advisory
market, by revenue, for segment 2?
 What is the regional scope of the global robo-advisory market?
 What is the region-wise (North America, Europe, Asia-Pacific, Latin America, and the Middle
East & Africa) historical, current and forecasted market size data for global robo-advisory
market, by revenue, for segment 1?
 What is the region-wise (North America, Europe, Asia-Pacific, Latin America, and the Middle
East & Africa) historical, current and forecasted market size data for the global robo-
advisory market, by revenue, for segment 2?
 What are the highlights and key takeaways for the regional segmentations of the global
robo-advisory market?
 Which are some of the major companies operating in the global robo-advisory market?
What is covered What you get – impact
 Understand the demand for robo-advisors to determine the viability of the
market
 Determine the developed and emerging markets where robo-advisory
services are provided
 Identify the challenges in the industry and address them
 Develop strategies based on the drivers, trends and highlights, for each of
the segments
 Evaluate the value chain to determine the workflow and to get an idea of the
current position where you are placed
 Identify the key competitors in this market and respond based on the
competitive positioning of the market players
 Knowledge of the initiatives and growth strategies taken by the major
companies and decide on the direction for further growth
 Define the competitive positioning by comparing the products and services
with the key players in the market

4. XX%
XX%
Hybrid
Pure
XX%
XX%
XX%
XX%
XX%
Mass affluent HNWI
Pension funds Insurance companies
Sovereign wealth funds
XX%
XX%
Hybrid
Pure
XX%
XX%
XX%
XX%
XX%
Mass affluent HNWI
Pension funds Insurance companies
Sovereign wealth funds
4
2018
USD XX Bn
2023
USD XX Bn
2018
USD XX Bn
2023
USD XX Bn
2018
USD XX Bn
2023
USD XX Bn
2018
USD XX Bn
2023
USD XX Bn
Global market share by type Global market share by client assets
2018 2023 20232018
1.3.1. Executive Summary (I)
North America
Latin America
Europe
The Middle East
& Africa
Asia-Pacific
2018
USD 4.45 Bn
2023
USD 34.05 Bn

5. 5
North America
XX 4.45
34.05
2015 2018 2023
XX%
XX%
Hybrid
Pure
XX%
XX%
Hybrid
Pure
XX%
XX%
XX%
XX%
XX%
Mass affluent
HNWI
Pension funds
Insurance
companies
Sovereign wealth
funds
XX%
XX%
15%
XX%
XX%
Mass affluent
HNWI
Pension funds
Insurance
companies
Sovereign wealth
funds
2018 2023
20232018
North America market share by type
North America market share by client assets
1.3.2. Executive Summary (II)

6. 6
2.1. Global market overview
Fig 1: Global historical market revenue (USD Bn) Fig 2: Global forecasted market revenue (USD Bn)
CAGR (2015-2017): XX%
Robo-advisory refers to a gamut of independent financial planning services for investment management requiring moderate to minimal human intervention. Robo-advisors provide financial advice
which are driven by algorithms. These services are used to allocate, manage and optimize clients’ assets. The application areas include tax-loss harvesting, investment selection, retirement
planning, etc.
CAGR (2018-2023): XX%
XX
XX
XX
2015 2016 2017
XX XX
XX
XX
XX
XX
2018 2019 2020 2021 2022 2023
Market challenges
• Definition and suitability of financial advice – A key challenge for robo-advisor platforms is to identify the extent of provisions for financial advice and the regulations
governing them. The regulations stipulate that the recommendations are only advice personalized according to the clients’ requirements and not any general
recommendation. The personalized recommendations need to be clearly defined depending on the customers’ personal goals and choices.
• High acquisition cost along with low revenue yield – The main challenges of the robo-advisory model are high client acquisition costs and the ongoing costs of servicing
clients. Low revenue yield on client assets is also a major factor that is inhibiting the growth of the global robo-advisory market.
• Conflicts of interests – The algorithms governing the robo-advisors help in removing the advisory bias to a large extent. However, each robo-advisory platform has a
preference for specific investment products and hence may raise the concern of conflict of interest from the customers. These platforms, which are sometimes owned by
investment management firms, tend to promote its own products. As the customer is paying a service fee for obtaining the robo-advisory services, the cost incurred by the
customer goes up without any substantial benefit, thereby acting as a disincentive while availing robo-advisory services.

7. 7
Increased objectivity, consistency
and transparency
The standard profiling of clients for assessing their
goals and risks by a human advisor involve elements
of emotional or subjective judgment, resulting in a
bias. The algorithms governing the robo-advisory
platforms help in removing such bias in financial
advice to a large extent, thereby allowing for
consistent recommendations for clients. This
promotes reliability and transparency between the
robo-advisors and their respective clients, which in
turn, help in the growth of the robo platforms.
Increasing competition with
entrants and diversified services
The increasing number of competitors in the market
leads to a diversified range of robo-advisory
services. The players offer a broad palette of
products and services with varying prices and
technology offerings.
Rising internet penetration along
with technology upgradation
Rising income levels coupled with rising internet penetration
assist robo-advisors to provide everything from automated
savings products to complex clients’ needs for investment
solutions. Living in a digitalized world, the digitally savvy
investors are are now keen on availing services such as those
provided by the robo-advisors. Armed with the new machine
learning algorithms, robo-advisors are able to provide
accurate and specific advice to the investors.
Increased affordability and accessibility
Robo-advisors reduce the cost of financial assistance. The use
of algorithms help in the automation of services provided by
robo-advisors, resulting in efficient management of
portfolios. While reducing investments and search costs,
robo-advisors also make it easier for individuals to decide on,
and monitor their investments. Robo-advisory platforms are
user-friendly and easy to understand, thereby making it
easier to navigate for wider audiences. These benefits
associated with robo-advisors encourage individuals to
invest.
2.2. Global - market drivers

8. 8
Technology advancements
Technology advancements act as a key enabler for the robo-advisory
market. Advancements in machine learning algorithms and artificial
intelligence have helped robo-advisors to scale up and meet the specific
needs of the investors. Along with that, the lower cost of computing and
storage has brought robo-advisory services within the reach of common
people.
Growing adoption of hybrid
robo models
The combination of human and robo-advisors, i.e., the
hybrid model of robo-advisory is taking over the wealth
management market. As consumers demand detailed
guidance, robo-advisors are relying on human intervention
to provide customized solutions and services. Some of the
companies that provide hybrid models are Betterment,
WealthSimple, Personal Capital, Vanguard, etc.
Ritholtz Wealth Management launched a robo-advisor
named Liftoff to support their lower-net-worth clientele.
Migration of wealth between
generations
Baby boomers are on the brink of retirement, implying that they will be
keen on shifting their assets to generate retirement income. Those among
them who are seeking to transfer their wealth to the next generation, see
investments as the ideal method of doing so, thereby creating demand for
wealth management. This will in turn propel the robo-advisory market.
Historically, baby boomers in Asia preferred traditional financial advisors.
However, the robo-advisors in the Asia-Pacific region are trying to catch up
with their counterparts in the U.S. and hence have the highest growth rate
in the forecast period. The Latin America and the Middle East & Africa
regions are at nascent stages and increasing at a considerable rate, thereby
pushing baby boomers to relocate their wealth through automated
financial advice platforms.
Rising number of start-ups
A large number of start-ups and financial institutions
offering robo-advice are entering the market leading to a
consistent growth. Initially, the robo-advisory services were
catering to individuals who had limited budget and less
experience in investing. But, recently the increased
competition in robo-advisory services has resulted in adding
new and differentiated products. Recently, Wealthfront Inc.,
introduced a tool that helps in minimizing investment risk
for customers having an investment budget of more than
USD100,000.
2.3. Global - market trends

9. 9
Market observations
3.1. Regional market overview – North America
Fig 5: North America historical market revenue (USD Bn) Fig 6: North America forecasted market revenue (USD Bn)
CAGR (2015-2017): XX% CAGR (2018-2023): XX%
XX XX
XX
2015 2016 2017
XX XX
XX
XX
XX
XX
2018 2019 2020 2021 2022 2023
• North America is the largest market for robo-advisory services with the maximum number of robo-advisory offerings like tax-loss
harvesting, investment selection, and retirement planning. It is a mature and well-established market with an expected growth rate of
XX% during the forecast period (2018-2023).
• An integrated market with a common language makes the North American market extremely lucrative. More than 80% robo-advisors in
the U.S. market have 3.0 capabilities that include wide range of automation technologies. These technologies cater to the wide service
offerings, from fixed investment strategies to automated portfolio rebalancing proposals based on market movements.
• Robo-advisors depend on different optimization strategies to recommend the investment portfolio. It has been observed that in the last
five years, the U.S. robo-advisors have invested 31% in equity and 61% in fixed-income for a conservative investor. On the contrary, for
growth oriented investor, the equity / fixed-income asset allocation is in the ratio of 70:30.

10. 10
3.2. Market segmentation based on types of robo-advisors
Fig 7: North America revenue contribution – by different types of robo-advisors, 2018 v/s 2023
XX%
XX%
Hybrid Pure
2023
USD XX Bn
• In North America, the pure robo-advisors handle the complex issues of
their clients in an increasingly fast-paced environment, while
maintaining low operational costs. In the U.S., pure robo-advisory
services cater to mass market products.
• Proliferation of Exchange Traded Funds (ETF) in the U.S. market is
expected, which will allow much more products available for
investment. As the ETFs constitute the key element of pure robo-
portfolios, this growth will increase both the supply and demand of
robo-advisory services in the U.S. market
Pure robo-advisors
• The need to cater to tailored solution requirements and complex
investment requirements is aiding the growth of hybrid robo-advisors in
North America. Betterment - a leading online investment firm - started its
hybrid robo services for recommendation and management of portfolios,
with on-demand advice from a human being. Earlier, Wealthfront, a major
robo-advisor based in Silicon Valley, launched its hybrid-robo advisory
platform in 2017. Both Betterment and Wealthfront focus on helping the
customers to achieve their personal goals from buying a home to paying
for college fees. In the U.S., several investors do prefer more human-like
content and tone. Hence, Wealthfront, for instance, has been focusing on
enhancing its features to create a better user experience.
Hybrid robo-advisors
XX%
XX%
Hybrid Pure 2018
USD XX Bn

11. 11
Fig 8: North America revenue contribution – by different client assets, 2018 v/s 2023
3.3. Market segmentation based on types of client assets
• Robo-advisory in its early days targeted investors who have limited investment capacity. However, the advent of new start-ups has led to an increased competition to
acquire bigger clients with large investment portfolios. U.S. based online investment firm, Betterment already boasts of 750 clients who qualify for high net worth
individuals (HNWI). With regular upgradation of latest technology such as automatic asset allocation, and self-learning algorithms, the robo-advisors are becoming far
more equipped to manage large and complex investment products. As a result, the HNWI segment held the largest market share of the robo-advisory market in North
America in 2017 and is anticipated to maintain its dominance throughout the forecast period of 2018-2023.
• In the U.S., robo-advisors offer Individual Retirement Accounts (IRAs) focusing mostly on servicing the pensions in the accumulation phase. The services don’t look at
the decumulation phase as the level of complexity is much higher to be handled through automated services. Despite that, the pension fund assets managed by robo-
advisors have witnessed high growth from USD XX Bn in 2018 to USD XX Bn by 2023.
XX%
XX%
XX%
XX%
XX%
Mass affluent
HNWI
Pension funds
Insurance
companies
Sovereign
wealth funds
XX%
XX%
XX%
XX%
XX%
Mass affluent
HNWI
Pension funds
Insurance
companies
Sovereign wealth
funds
2018
USD XX Bn
2023
USD XX Bn

12. 12
Twins Michael Kane and Mathew Kane founded the financial services company Hedgeable, Inc. in 2009. It is registered with the U.S.
Securities and Exchange Commission. This digital wealth management platform provides web and mobile applications for customers
looking for personalized investment portfolios. The company specializes in tactical investing, which includes no fixed set of allocations but
manages the accounts actively in response to market movements.
• Sophisticated portfolio customization
• Automated intelligent rebalancing
• Robust platform features
Company snapshot
8.6. Company overview – Hedgeable, Inc.
• In 2015, Hedgeable, Inc. launched the bitcoin prediction page to
include bitcoin allocations pay-off for investors. The addition of
bitcoin to portfolios provides diversification and also offers exposure
to the advanced blockchain technology sector.
• Hedgeable, Inc.’s platform offers services which include a feature
named Tax Samurai, that is run by the AI named ‘Katana’ to target
high-net-worth individuals. The next generation of AI in wealth
management is expected to use rules or models which are crafted by
scientists.
Major initiatives/highlights
Founded: 2009
Headquarters: New York, U.S.
Employees: 11-50 (2017)
Key people: Michael Kane and Mathew Kane (Founders)
Website: www.hedgeable.com
Growth strategy
Hedgeable offers customized portfolio management that appeals to
their target market: socially-responsible investing, income
investing, bitcoin investing, and even venture capital funds, as
some of their clients are involved with private tech companies.
The company also hands out rewards like Golden State Warriors
or New York Yankees tickets, or even tech prizes, like virtual
reality headsets, in order to encourage people to save.
Hedgeable offers application program interface (API) to enable
developers at investment firms, banks, brokerage firms, and
credit card companies to log onto their platform.
Services

13. Appendix
13
Research methodology
The study begins with identifying the right research question(s). The question depends on what we are going to achieve by conducting the research or what we want
to convey to the prospective customers through this research. Next we identify the logical steps to arrive at the answers to the question(s). These logical steps form
our research objectives. The research objectives provide us a guideline regarding what information we need to conduct analysis. We strongly believe that clear
objectives will lead to clear results about the given market
The next stage of the research is conducted utilizing the secondary sources of information, process called desk/secondary research. Netscribes Inc. has a considerable
volume of information in both quantitative and qualitative forms, across all major industries and its sectors. Also, we conduct in-depth study of the market,
understanding its key stakeholders, drivers, trends, challenges and opportunities globally covering major regions such as North America, Latin America, Europe, Asia
Pacific, and Middle East & Africa. The key sources consumed for these research include (but not limited to) the following:
 Financial reports published by the key market players
 Government and other official sources including the National Statistics
 National and International trade associations
 Paid databases
 Other reliable sources
The qualitative and quantitative findings from the above stages are brought together by specialists to perform a rigorous analysis. The regional market trends, drivers,
and opportunities obtained during the analysis is compared with regional economic indicators, sector growth rates, population index, etc. to ensure the data
consistency. After ensuring the consistency, these historical and present indicators help us to understand how the market will perform in future. Our proprietary
forecasting model factors in all these indicators to predict the future market accurately.
Primary research complements the secondary research, as and when required, as it helps us to gain insights from the industries directly by communicating with the
senior executives, key opinion leaders and independent consultants who are experts in their industries or specific industry sectors. Such interviews are conducted
across the value chain of the market in question. A survey questionnaire is usually prepared for conducting any primary interview or survey. The questionnaire is
developed with utmost care to fulfil the key research objectives and also to validate the assumptions about the market. This supplements the information otherwise
unaddressed via secondary research. The primary data collection is done by expert interviewers who have specific industry knowledge. Linguists are hired to conduct
interviews in the respondent’s native language. Some of the primary research methods applied at Netscribes include the following:
 In-depth Interviews
 Executive Interviews
 Expert Panels

14. Appendix
14
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