The robo-advisor has gone mainstream, with top robo-advisors like Wealthfront and Betterment asserting themselves and disrupting the financial space. According to Aite Group LLC, Robo-advisors have attracted almost US$50 billion in assets. BI Intelligence predicts that robo advisors will manage around 10 percent of total global assets under management by 2020. Here are 10 global robo-advisory companies to watch in 2017:
Founded in founded in 2011, Wealthfront is among the fastest growing and well-documented company. With more than $1bn in client assets under management, the company is the largest and fastest developing automated investment service on the planet. It has raised more than $65m in funding from top VCs including Greylock Partners and Index Ventures and high profile angels, such as Joe Jordan, Ben Horowitz, and Marc Andreessen. The firm manages more than 80,970 accounts.
Betterment is the largest and fastest-growing automated investing service that helps people to better protect, manage, and grow their wealth. A 7-year old “robo-adviser” wealth manager, Betterment outshined rival Wealthfront in 2015 after surpassing $3 billion in assets under management. Currently, Betterment has $7 billion in assets under management and over 200,000 clients.
Personal Capital is a robo-advisor that is attracting millennials in droves. It has carved out a niche in the sea of robo-advisors. Personal Capital is best for high-net-worth investors, hands-off investors, tax optimization and investors in search for free financial management tools. Since the end of 2015, Personal Capital has seen about 56 percent increases in its AUM.
4) Schwab Intelligent Portfolios
Schwab Intelligent Portfolios is an automated investment advisory service that creates and rebalances portfolios. It has more than $10 billion in assets under management. Launched r in 2015, Schwab Intelligent Portfolios is winning in the marketplace, increasingly attracting assets and clients with a compelling combination of financial service, products and value.
Founded in February 2012, Acorns is the fastest growing investment app that enables people automatically invests their spare change. Since 2014, Acorns has grown its user base to 750,000, including a 57 percent increase in just the past two months. Wealth Management Today estimates that the robo-advisor could have about 2 million client accounts by year-end.
SigFig is in hyper-growth mode and proving to be very successful in the robo-advising space. Using a combination of technology, design, and data science, the company empowers investors with the guidance and information they need to achieve their personal financial goals. Last year, SigFig raised $40 million from investors including Eaton Vance and UBS.
Bambu is a B2B Robo-Advisor platform that allows businesses to provide digital savings and investment solutions to consumers. In the first year of operation, the company has generated revenue of US$350,000 while successfully raising US$400,000 in seed funding. Bambu won the Best Early Stage Start-up Award at Fintech Finals 2017. The firm was selected as one of the top 8 firms to partake in SuperCharger 2.0 Accelerator program based in Hong Kong and has opened an office in Hong Kong to better serve the rapid-growing Asian Fintech market.
WiseBanyan is an online platform that provides personalized financial advisory services for free. Last year, the start-up celebrated seeing their number of customers more than double to reach 20,000l clients. The company has about $100 in assets under management.
Blooom is one of the fastest growing robo-advisors. Founded in 2013, the company was recognized as one Startland’s Top Start-ups to Watch in 2017. The company focuses on helping users with a workplace retirement account like a 403b or 401k. Blooom has more than $500 million in assets under management.
Vanguard Personal Advisor Services combines the best of high-tech and high-touch to help users with their real-life investing needs. It brings low-cost investment choices to customers that need a personally managed investment portfolio. Vanguard Personal Advisor Services is building on Vanguard‘s existing success by targeting the investment advisory market that is growing exponentially.