New research shows that it’s not just the small fry that want technology to guide their investments
If you thought that robo advisors would only appeal to clients with small amounts to invest, or tech-obsessed Millennials, then it might be time to re-evaluate.
That’s because new research suggests that investors with plenty of cash are actually keen on automated advice too.
Managing director of Accenture, Kendra Thompson, reports that even though large investors are not normally willing to place all their money into automated platforms there is evidence that they are at least experimenting with them. For example, at the automated platform at Charles Schwab, portfolios with a value of at least $1million account for 15 per cent of accounts.
Meanwhile, at Betterment, mass affluent investors with wealth of $100,000 or more make up more than 50 per cent of the $3.3billion it has in the way of assets under management. Wealthfront too, boasts around a third of its assets with accounts that require at least $100,000.
According to Aite Group, automated advice is on the increase. During 2010, there was a 210 per cent expansion in asset growth for robo-advisors. In four years, AT Kearney data suggests that the platforms will make up $2.2trillion in assets.
Part of this has been prompted by major brokerages such as Wells Fargo, Bank of America and Morgan Stanley all embracing the technology – however, they have no plans to drop their human advisors as the majority of investors still want to talk to a human from time to time.
That’s because new research suggests that investors with plenty of cash are actually keen on automated advice too.
Managing director of Accenture, Kendra Thompson, reports that even though large investors are not normally willing to place all their money into automated platforms there is evidence that they are at least experimenting with them. For example, at the automated platform at Charles Schwab, portfolios with a value of at least $1million account for 15 per cent of accounts.
Meanwhile, at Betterment, mass affluent investors with wealth of $100,000 or more make up more than 50 per cent of the $3.3billion it has in the way of assets under management. Wealthfront too, boasts around a third of its assets with accounts that require at least $100,000.
According to Aite Group, automated advice is on the increase. During 2010, there was a 210 per cent expansion in asset growth for robo-advisors. In four years, AT Kearney data suggests that the platforms will make up $2.2trillion in assets.
Part of this has been prompted by major brokerages such as Wells Fargo, Bank of America and Morgan Stanley all embracing the technology – however, they have no plans to drop their human advisors as the majority of investors still want to talk to a human from time to time.
