Library, Sponsored

The growing convergence between traditional asset managers and robo-advisors

  • Robo-advisors are increasingly popular with younger investors, as they appreciate their automation.
  • A new white paper explores the opportunity traditional asset managers have to reach new customers with this technology.
close

Email a Friend

The growing convergence between traditional asset managers and robo-advisors

Robo-advisors are automated investment solutions that manage portfolios using algorithms and artificial intelligence in order to optimize performance without human intervention. And they have the opportunity to capture the next generation of investors who rely on apps to manage their lives — and money.

Digital investment solutions are scaling. Assets managed by robo-advisors hit $460 billion in 2020 and are predicted to grow to $1.2 trillion by 2024. These solutions are also crucial — as Millennials and Gen X are expecting to receive a wealth transfer of $68 trillion in the coming decades.

Yet despite the appeal of replacing expensive human relationships, robo-advisors can’t stand alone. With significant costs for software development and algorithm building, their profitability is highly elusive. And no less importantly, they lack what financial institutions possess — trust. 

To capture market share, robo-advisors have a long way to go. At the same time, financial institutions must merge digital solutions to capture the growing Millennial and Gen X investor sector.

A new white paper by Plaid and Tearsheet Studios explores why the future is about convergence. With the power of human asset managers and and ease of robo-advisors, companies can offer the seamless digital investment solution that will capture today’s and tomorrow’s investors.

Download the white paper for an in-depth understanding:

  • How robo-advisors have emerged as a challenge to traditional asset managers
  • What financial institutions have to offer — and gain — from collaborating with automated investment technologies
  • Why the hybrid model can pull the best from both worlds and service the new generation of investors

Get the white paper here

0 comments on “The growing convergence between traditional asset managers and robo-advisors”

Sponsored

Why the pursuit for ever-growing profit margins has opened the door to Square and other small business disruptors

  • Financial Institutions continue to pursue higher profit margins by focusing on commercial clients. In the process, they have neglected the small business market -- opening the door to disruptors.
  • Square saw an opportunity: In 2009, they introduced a dongle-style card reader to simplify card payment acceptance -- addressing an ongoing pain point for small business owners -- and gained a foothold in the small business market that continues to widen.
Autobooks | October 18, 2021
Sponsored

Deliver more good orders this holiday season (and ditch the fraud) with EMV® 3-D Secure

  • Last year, Cyber Monday was the heaviest online spending day in U.S. retail history, and ecommerce is expected to dominate again this holiday season.
  • EMV 3-D Secure is a tool that can help things run smoothly this season by streamlining the backend communication between the buyer, their bank, and the merchant.
Visa | October 15, 2021
Blockchain and Crypto, Sponsored

Stablecoins: licensing and registration are not equal to regulation

  • The rise of stablecoins calls for a better understanding of their operation, oversight, and best practices.
  • Prudential regulation is essential, and licensed-only issuers should raise concerns.
Paxos | October 11, 2021
Data, Library, Sponsored

WTF is Modern Connectivity?

  • The financial industry is leaving behind legacy methods like screen scraping and looking to direct connections that are safer, faster, and more reliable.
  • Download the new WTF Guide by Tearsheet and MX all about Modern Connectivity.
MX | October 11, 2021
Data, Sponsored

Fighting fraud by better understanding financial data

  • With the rise of open banking, the security of financial data should be top of mind.
  • MX breaks down three keys for keeping customers' data protected.
MX | September 28, 2021
More Articles