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”

Outlier OpinionsMakers

Data, Podcasts, Sponsored

‘Earned wage access is the next evolution in improving day-to-day liquidity’: Argyle’s Matthew Gomes

  • Director of strategy at Argyle, Matt Gomes, joins us on the Tearsheet Podcast.
  • Listen in to our conversation about how payroll and employment data API platforms enable financial institutions to bring the next generation of financial products to consumers.
Argyle | September 22, 2022
Data, Podcasts, Sponsored

‘Developers have become as central a figure as the banks’: Fiserv’s Niranjan Ramaswamy

  • VP and GM of embedded fintech at Fiserv, Niranjan Ramaswamy, joins us on the Tearsheet Podcast.
  • Listen to our conversation about how Fiserv empowers developers to build products that bring fintechs and FIs together.
Fiserv | September 21, 2022
Data, Podcasts, Sponsored

‘Not all fintech integrations are created equal’: Fiserv’s Jon Nordhausen

  • VP of product strategy at Fiserv, Jon Nordhausen, joins us on the Tearsheet Podcast.
  • Listen to our conversation about how cloud data integration is removing friction and enabling new capabilities for data to flow seamlessly between fintechs and FIs.
Fiserv | September 07, 2022
Sponsored, The Customer Effect

Creating a hyper-personalized banking experience

  • To this day, a lot of financial institutions are using legacy systems that were written back in the '80s and remain the same.
  • Today's digital banking platforms and card services can offer hyper-personalized experiences to create a unique experience for each cardholder.
Zeta | August 25, 2022
Data, Podcasts, Sponsored

‘Data is the crux of open finance’: Fiserv’s Jamie DelMedico

  • General Manager of Fiserv’s Aggregation and Information Services unit, Jamie DelMedico, joins us on the Tearsheet Podcast.
  • Listen in to our conversation about the evolution of data processes that are helping drive the push toward open finance.
Zachary Miller | August 24, 2022
More Articles