Robo adviosry servies and technologies are witnessing a boom in the investments that they are getting. They are pegged to manage assets of over $5 Trillion by the year 2025. That is a compounded annual growth rate (CAGR) of a staggering 68%!
Robo advisors are bound to supplement and strengthen the traditional banking industry due to the low cost of innovation, implementation and scalability. Many fintech companies and banks are eager to adopt these and are early adopters. Even investment banks are today using robo advisors for wealth management, asset management and for lending services. Robo advisors have been able to provide banking services to a large section of the population that has traditionally been underbanked and has never been able to take full advantage of banking facilities and services by using applications and technologies like UPI.
These technologies have also ensured that investments have gone to allied industries like cyber security and biometrics. Banks are today increasingly collaborating with established and startup fintech companies that allow more people to use their services in the same amount of time, enhance customer acquisition, provide better services and do all this in a way that does not encourage frauds. Robo advisors are today not just providing better facilities, but also attracting more investments and jobs to the banking and fintech sectors.