The US is a leader in robo-advisors

Published on: September 5, 2018 / Updated on: November 5, 2021 – Author: Konrad Wolfenstein

Robo-advisors from the USA are world leaders – Image: fotogestoeber|Shutterstock.com

The term robo-advisor is a combination of the English words robot and advisor. Robo-advisors use a systematic, largely automated process to give more people access to professional wealth management while protecting investors from emotionally driven and therefore suboptimal investment decisions.

• Financial advice from robo-advisors is rather unpopular in Germany

The US is the world leader in robo-advisors. These are software programs that digitize and automate the services of a traditional financial advisor. According to Statista's Digital Market Outlook (DMO), nine of the twelve largest companies in this sector are based in the United States. Vanguard is the market leader, with an estimated $47 billion managed through its financial technology, according to Statista. The top five also includes the two startups Betterments ($7.4 billion) and Wealthfront (around $5 billion). The German company Scalable Capital manages $125 million. DMO analysts have compiled the data on the development of the financial technology market in their free Personal Finance Report.

Financial technology: The USA leads in robo-advisors – Image: Statista