PUBLISHER: Grand View Research | PRODUCT CODE: 1446440
PUBLISHER: Grand View Research | PRODUCT CODE: 1446440
The global robo advisory market size is anticipated to reach USD 41.83 billion by 2030, registering a CAGR of 30.5% from 2024 to 2030, according to a new report by Grand View Research, Inc. The growing use of smartphones coupled with the increased applications of chatbots on various investment and e-commerce platforms worldwide is anticipated to drive the demand for robo advisory during the projected period. In addition, the increasing awareness of digital investment consultation services is expected to drive market growth during the forecast period.
Robo-advisory includes algorithm and automated driven financial planning with little human involvement. Additionally, through an online survey, the robo-advisor gathers financial information from clients, such as their current financial position and future financial goals. Furthermore, using this information, robo advisors offer clients certain benefits such as quick account setup, portfolio management, and security features. Such factors are anticipated to drive the market in the near future.
Players in the robo advisory market are actively prioritizing technological advancements and forming strategic partnerships to broaden their product range, aiming to enhance the automated investment experience for their customers. Major market participants are securing funding to elevate their automated financial advisory services and improve overall customer experience. In September 2021, Betterment LLC secured USD 160 million in funding, propelling the company's market valuation beyond USD 1.3 billion. Such initiatives are driving the growth of the robo advisory market.
The pandemic has contributed positively to the market growth, thereby driving the demand for robo advisors in the near future. Several businesses have reported increased digital consulting activity in the first quarter of 2020. For instance, in April 2021, Betterment reported an increase in account openings by over 25% due to the COVID-19 pandemic These factors are expected to fuel the market growth during the forecast period.