Robo-Advice in Retirement, Pensions, and Protection
"Robo-Advice in Retirement, Pensions, and Protection", report looks at the range of robo-advice propositions currently available, and uses them to give an overview of how the space is evolving. It analyzes what types of providers are entering the market, what type of service they offer, and what areas of customer finances they are advising on. The report concludes with key questions providers must ask themselves when developing a robo-advice service, alongside key lessons learned from the case studies.
Robo-advice generally refers to online platforms that provide automated, algorithm-based financial advice with minimal use of human intervention. The concept originated in the wealth management space for investment portfolio management, but is now expanding into other areas of financial services such as pensions, retirement, and protection insurance. There is a substantial advice gap for which robo-advice solutions represent an opportunity. To develop a robo-advice proposition, players must ask themselves key questions such as what are they trying to help customers achieve, what areas of financial services do they want to advise on, what level of complexity do they want advice to have, and do they want to develop a proposition independently or via a partnership?
- Robo-advice can help users track and monitor their finances in real-time, create and achieve goals, and recommend the best actions to take or products to buy.
- The easiest model of robo-advice provision is for larger players such as incumbents and banks to partner with smaller companies such as start-ups and technology providers.
- Robo-advice can charge lower fees than traditional human advisors, which will improve access to advice for customers currently underserved, unable, or unwilling to pay for traditional advice from a human.
Reasons to buy
- Develop a strategy to launch a robo-advice service by scoping what area of financial services you want to advise on and understanding the best method for market entry.
- Learn about current robo-advice propositions in retirement, pensions, and protection insurance in order to stay up to date with innovation and remain competitive. Companies Mentioned in this report are - Vanguard
Legal & General
Table of Contents
The Robo-Advice Opportunity
Online Wealth Managers
Banks & Incumbents
Advisors & Technology Companies
Conclusion & Recommendations
Secondary Research Information is collected from a number of publicly available as well as paid databases. Public sources involve publications by different associations and governments, annual reports and statements of companies, white papers and research publications by recognized industry experts and renowned academia etc. Paid data sources include third party authentic industry databases.
Once data collection is done through secondary research, primary interviews are conducted with different stakeholders across the value chain like manufacturers, distributors, ingredient/input suppliers, end customers and other key opinion leaders of the industry. Primary research is used both to validate the data points obtained from secondary research and to fill in the data gaps after secondary research.
The market engineering phase involves analyzing the data collected, market breakdown and forecasting. Macroeconomic indicators and bottom-up and top-down approaches are used to arrive at a complete set of data points that give way to valuable qualitative and quantitative insights. Each data point is verified by the process of data triangulation to validate the numbers and arrive at close estimates.
The market engineered data is verified and validated by a number of experts, both in-house and external.
REPORT WRITING/ PRESENTATION
After the data is curated by the mentioned highly sophisticated process, the analysts begin to write the report. Garnering insights from data and forecasts, insights are drawn to visualize the entire ecosystem in a single report.