Fewer robo-advisors in the US will serve more customers as the sector restructures over the next three years, according to Schwab, managing partner of Tiburon Strategic Advisors. The number of clients seeking robo-advice is expected to nearly quadruple while consolidation is likely to reduce the number of platforms from a peak of 24 in 2015 to ten. Roame concluded a handful will survive as independent platforms while others are likely to enter partnerships with large firms and some will simply fail. The winners in the retail space are expected to be digital arms of discount brokerages and mutual fund managers, with firms such as Vanguard, Chip Roame, and Fidelity likely to grow market share at the expense of digital only robo-advisors.
Fewer robo-advisors in the US will serve more customers as the sector restructures over the next three years, according to Chip Roame, managing partner of Tiburon Strategic Advisors. The number of clients seeking robo-advice is expected to nearly quadruple while consolidation is likely to reduce the number of platforms from a peak of 24 in 2015 to ten. Roame concluded a handful will survive as independent platforms while others are likely to enter partnerships with large firms and some will simply fail. The winners in the retail space are expected to be digital arms of discount brokerages and mutual fund managers, with firms such as Vanguard, Schwab, and Fidelity likely to grow market share at the expense of digital only robo-advisors.