Nice overview of the ROBO market and trends in ASIA, incl BCG report. Strong growth expected! It is clear that Asia-Pacific will drive growth in the sector, and given Asia’s high Internet penetration rates and the habits of new millennials, robo-advisors have the potential to be a hit in the region.
Automated advisory platforms, also known as robo-advisors, have already caused a stir in the US and the UK, and are now winning market share in Asia. These digital platforms offer online, customized investment advice and portfolio constitution, most of the time through ETFs or mutual funds, and are starting to appear in Asia as the region is expected to drive most the private wealth’s growth for the next decade and beyond. The Boston Consulting Group predicts that Asia-Pacific (excluding Japan) will surpass Western Europe (a projected US$49 trillion) – which currently stands as the second-wealthiest region after North America – with a projected US$55 trillion in private wealth in 2019. Asia-Pacific is expected to hold 26% of the global financial wealth in 2019, compared to the 21% share it held in 2014.