Will Robo-advisor be the next big thing in asset management in Europe?

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The Robo-advisor in the European market will see exponential growth in the next few years.

Robo-advisor is a new kind of fintech solutions in asset management that offers fully -automated and digitalized asset management solutions. The product could be a website or an app with a template that collects customer data, investment horizon, risk preferences, and other investor information to suggest suitable financial products based on that risk profile of the user.

Accordingly to Deloitte, Robo-advisors services in Europe continues to be top of the game compared to traditional wealth managers.

Assets under management in the Robo-Advisors segment in Europe are estimated to reach US$44 in 2020. This shows a 43% year-on-year increase. The number of users of Robo-advisor services in Europe in 2020 is projected to reach 21,000, growing 39% year-on-year. Though this number is still very small compared to the potential growth of the market, it is expected to double by 2022.

The average assets under management per user in the Robo-Advisor segment is projected to reach US$5,363 in 2020.

Assets under management in the Robo-Advisors segment- Source: Rolandberger

Key players in European Robo-Advisor market

Money farm

Moneyfarm is one of the early and key players in the Robo-advisor in Europe. Moneyfarm was initially launched in 2012 in Italy. The company was invested by United Ventures, Allianz Group, Cabot Square Capital, and Allianz X. Moneyfarm launches in UK in 2016 and currently operate in Italian and UK markets.

Moneyfarm raised a total of £60 million and offer services to 40,000 customers in Italy and UK. The company has more than $1 billion under management on its platform.

Scalable

Based in Munich, Germany, Scalable Capital is Europe’s largest Robo-Advisor. They operate in Germany, Austria, and the United Kingdom. Scala helps investors get a personalized, globally-diversified, and fully managed portfolio.

Scalable was founded by a team of Germans in 2014, with the mission to democratize investment. Scalable raised in total €116 million from prominent investors such as Blackrock, Holtzbrinck Ventures, Tengelmann Ventures.

Scalable currently has some 80,000 customers across Germany, Austria and the UK and has more than $2 billion under management on its platform.

Source: Finanzs.com

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