In the hot start-up world of FinTech, there are many different segments from Insurance to Banking to Bitcoins and trading and . . . . One of these advisory business that has been well know by the likes of Schwab, Fidelity and Vanguard. The new players are increasingly algorithmic based and are are labeled Robo-advisors.
As part of the FinTech Dynamic Database we are building, we take a look here at the world of Robo-Advisors and those competitors in the Global 5000 database and interested parties. Consider this a beginning as we expect this to grow as more competitors and interested parties flock to this big revenue pool.
To start, here is a list of companies generally considered in the Robo-Advsor category. They are listed in alphabetical order. You will see some of the names listed that are subsidiaries of others in the financial space:
- Acorns Grow, Inc.
- Advisor Engine (fmr Vanare)
- AssetBuilder, Inc.
- Betterment Llc
- Clarity Money, Inc.
- Covestor (sub of Interactive Brokers)
- Financial Guard (sub of Legg Mason)
- Folio Investing
- FutureAdvisor (sub of BlackRock, Inc.)
- Helium Investments
- Hello Wallet (subsidiary of Morningstar)
- LendingRobot (algortithmic)
- Mint Software (subsidiary of Intuit)
- Miss Kaya
- Motif Investing, Inc.
- Nutmeg Saving and Investment Limited
- Personal Capital Corporation
- Rebalance IRA
- Scalable Capital
- SigFig Wealth Management, LLC
- Wealthsimple Financial, Inc.
Aditionally, there will be any number of firms that have an interest in this trend and the players as they may sell services to this market and/or may be affected by the trend. Some examples include:
- KPMG and other consulting firms with a large financial market presence
- The Motley Fool and related investment advice firms who may be facing a smaller market as more potential clients move money to Robo-Advisors
- Institutional Shareholder Services Inc. and similar firms that derive revenue from the investor community
Next are the incumbents. While the Robo-Advisors are generally appealing to a younger, more digital savvy consumer the money spent on current ‘pre-FinTech’ firms is substantial. We have identified some of the largest from the Global 5000 database as well as larger firms that have begun offering Robo type advice. This is the list that could be substantially longer – but a few notables are worth reviewing:
- Bank of America Corporation
- Bank of Montreal
- BlackRock, Inc.
- Charles Schwab Corporation
- E*Trade Financial
- Fidelity Investments
- Legg Mason
- NestEgg Wealth (sub of Advisor Engine)
- Permira Advisors LLP
- Ritholz Wealth Management
- TD Ameritrade
- TradeKing (subsidiary of Ally Financial)
- Vanguard Group
- Wells Fargo & Company
- wikifolio Financial Technologies GmbH
The bottom line here is that this is a very large and fluid market. Not all the start-ups will make it. Not all the incumbents will transition to the Robo-Advisor model. We can expect this to be an active M&A scene over the next few years and we’ll be keeping the database updates on a regular basis.
For more information about the FinTech database — click here