Robo Advisory: Growing Popularity of Wealth Management Services to Drive Demand

Robo Advisory is gaining immense traction in various countries across the globe, owing to significant surge in demand for financial services among people along with rapid advancements in technology. The investment services industry has come long way from the initial years, and gone through transformation changes over the last couple of years due to the use of innovative technologies to effectively predict favourable outcomes. Thus, more and more people have gradually shifted their preference from conventional investment services to robo advisory.

The robo advisory industry has projected immense and persistent investments to advance technology as the robo advisor makes effective use of algorithm calculations to interpret data and provide necessary asset allocation approach that intrinsically meets the goals and objectives of the investor.

The demand for wealth management services surged exponentially during the pandemic as more and more people across the globe increasingly inclined toward trading and investing so as to make effective use of investment opportunities. In addition, rigorous trading or investment strategies can appreciably help minimize and counter financial instability. This instability has been caused due to adverse disruptions businesses processes during lockdowns and growing cases of unemployment across the globe. These factors are expected to surge the demand for robo advisory in the coming years.

Furthermore, remarkable perks of adopting robot advisory services also significantly contribute to its notable surge overtime. Robo advisors are capable of allowing automatic management of wealth of people based on algorithms. Thus, even small investors can make effective use of robo advisors to seamlessly track the progress of their portfolios.

In addition, robo advisors are available at low and affordable starting prices, transparent, and offer attractive returns. Moreover, robo advisory services offer a great deal of benefits over the conventional modes of investments and advisory. These benefits include high quality & cost-effective portfolios, secure investments, and tax loss harvesting.

Besides, the judgements offered by robo advisory platforms are based on existing economic conditions and real-time analysis and statistics. This substantially obliterates the chances of credit risks, and hence enables its adoption among consumers. These factors are expected to boost the growth of the robo advisory market in the forthcoming years. According to the report published by Allied Market Research, the global robo advisory market is expected to reach $41.07 billion by 2027, growing at a CAGR of 31.8% from 2020 to 2027.

Numerous players of the market across the globe are launching new, innovative robo advisory services to effectively cater to the needs of people. For instance, Citigroup Inc., an American multinational investment bank and financial services corporation, launched a new digital Robo-advisor. This will provide free services to customers with at least $50,000 in deposits or investments at the bank. Thus, persistent robo advisory service or platform launches coupled with the rapid digitalization in financial services and growing demand for cost-effective investment advisory are expected to create ample opportunities for the growth of the market.

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