We may be approaching “peak robo”, as investors realise that they can buy the same products for lower fees without consulting automated services, according to Cullen Roche, founder of Orcam Financial Group. The entry of Merrill Lynch and Fidelity Investments into the robo-advisory market will potentially drive trillions of dollars of assets into the space by 2020, he said. Roche said there was a lot more money in this sector than people realised, but it would take time before regulators understood how much value could be created from it.
We may be approaching “peak robo”, as investors realise that they can buy the same products for lower fees without consulting automated services, according to Cullen Roche, founder of Orcam Financial Group. The entry of Merrill Lynch and Fidelity Investments into the robo-advisory market will potentially drive trillions of dollars of assets into the space by 2020, he said. "The only reason you would ever open a robo-adviser account is if you are unaware of the fact that you’re buying something that already exists in a lower-fee structure," he said.