Will be interesting next 12 months for the ROBO players all pivoting and adapting their models to deliver the high potential exit valuations implied in last rounds, with highest exists to date more in the range of USD 100-200m. The company is pivoting to manage its customers’ entire financial lives, much as alternative lender SoFi has.
Six years ago roboadvising was the domain of just a few startups, but today the space is getting increasingly crowded. Betterment saw that coming since Day One (exactly six years ago), according to CEO Jon Stein. “But that’s a good thing for us, because every time one of these incumbents launches a product, we grow faster,” he said at the Future of Fintech Conference yesterday. “They are educating the market, so we get more customers learn and come to us.” Betterment now has more customers “than any other robos combined, by a factor of two,” according to Stein, and is now planning to become the “central financial relationship” for those customers.