Robo Advisors “made in Europe” set to take off ?

Over $50bn have been invested globally into automated investment management advice models (the so-called “ advisors”), the majority of it in the US.

After the startups Wealthfront, Betterment and FutureAdvisor broke the ice for this new type of market player, Charles Schwab and Vanguard followed suit and used the power of their brand to collect a multiple in assets compared to the first movers.

A very remarkable situation occurred – also in the US – after BlackRock in summer 2015 acquired startup firm Future Advisor, who following that deal within a few months only was able to close various robo advice B2B deals, for example with BBVA.

But is robo only a US phenomenon?

boutique TechFluence hast tracked 50 startups in Europe in this category, spanning from fully automized models to hybrid models. Especially in Germany the number of robo advice startups has increased significantly to almost 20 – some of them still in stealth mode.

The German market also saw some deal related activities already. The founders of Owlhub joined the team of LIQID, orchestrated by Project A. Very recently the very traditional private bank Hauck & Aufhäuser, which awaits approval for their future owner Fosun, acquired easyfolio, that had already changed hands from the founder to publisher Frankfurter Allgemeine.

Currently the digital wealth management vertical sees a lot of interest from various sectors. Not only do and – naturally asset and wealth managers – consider a form of robo advice in various countries. Also players from other sectors watch the scene closely.

We expect the telecom sector expanding the interest from banking solutions (in Germany in cooperation with Fidor) also to other sectors which formerly where a mere banking domaine.

Mobile providers know the clients so much better than financial services providers. Given the massive growth potential estimated by Cerruli (almost $500 bn AuM) or AT Kearney  (~$2.2trn), both by 2020 this would not be a surprise and a wake up call for all financial advisors to brush up their digital skills in order to stay relevant.

“FinTech Forum On Tour | Robo Advice” on 8th June 2016 in Berlin will put startups and “corporate startups” in the robo advisory space on stage in front of investors and incumbent financial institutions.

If you are interested to join you may request at [email protected]

“Robo” advice startups may apply to pitch !


About TechFluence / FinTech Forum On Tour

TechFluence is an award-winning FinTech research and advisory boutique based in Frankfurt and London. Founded in 2012, TechFluence is on a mission to create the financial services of the future, working closely with FinTech startups, investors, financial institutions and corporates. In 2013, when Continental Europe was known for just a handful of FinTech startups, TechFluence co-founded FinTech Forum, the first and the largest community for FinTech in Continental Europe that has brought together 150+ startups with 350+ investors, financial institutions and corporates. FinTech Forum On Tour combines research, scouting and selection rigor with the  event format of FinTech Forum to address specific domains, or customer objectives.

 This article was originally published by Michael Mellinghoff on linkedin