Robo-Advisory in the securities market

Robo-advisors in today’s known form occurred in the UK in 2008 for the first time and provided customers with a simple and inexpensive way to invest money. Since their market entry, Robo-advisors have developed rapidly, currently affecting the financial sector’s securities business, more specifically:

• In 2018, of the 800,000 new DIY investment accounts opened in the year to the end of September, one in three were opened with one of the UK’s main robo-advisors, including Nutmeg and Moneyfarm (Source: FT, November 2018)
• The number of DIY investment accounts – including robo and platform customers – rose to 4.8m over the year to September, an increase of 22 percent
• The volume of assets in the DIY investing market, where customers pick and choose investments without the help of a financial adviser, grew to £224bn over the 12 months to September and a 15.4 percent increase over the year

In order to participate in the market growth and to be able to remain competitive in the securities business, banks incrementally cooperate with FinTechs to ensure the implementation of their own robo-advisors. However, for a successful implementation or further development, some key considerations must be made.

This white paper addresses all decision-makers in the securities business from banks to investment service providers, and addresses the following two questions:

• Firstly, how should robo-advisors be introduced for the first time?
• Secondly, how could existing robo-advisors success be evaluated?

Read our full report to find our more.