This story was delivered to BI Intelligence "Fintech Briefing" subscribers. To learn more and subscribe, please click here.As the space grows increasingly crowded, many robo-advisor startups have begun to offer their technology to incumbents to distribute to their own customers.In the latest evidence of this, 8 Securities, the oldest APAC robo-advisor, announced plans on Wednesday to open its platform to legacy banks and asset managers. 8 Securities' solution, which includes underlying tech infrastructure, as well as portfolio creation and management, is built on flexible application program interfaces (APIs) that will allow incumbents to customize the platform for their customers' needs and scale it quickly.The service can be launched in any geography, language, and currency, the company says. It can be used online or via mobile, and is compatible with iOS, Android, and Windows.This solution will likely be successful for a number of reasons. First, Asia is seeing an unprecedented wealth boom among younger generations, and incumbent financial firms have been slow to meet these individuals' demands for digital services. As such, a quickly implementable robo-advisor solution will be welcomed by legacy players. Second, that the solution can be adapted to any geography means it has a very wide potential market. And finally, with many incumbents launching their own robo-advisory products, it's clear their demand for the technology is high, and using an existing robo-advisor is much cheaper than building one from scratch.Robo advisorsare threatening to upend the enormous global wealth management industry in several ways, and they are likely to arrive in full force within the next few years.Sarah Kocianski, senior research analyst for BI Intelligence, Business Insiders premium research service, has compiled a detailed report on robo advising that looks at the market for robo advisory services, the drivers behind consumer adoption of robo advising, why the robo advisor market presents an opportunity to traditional wealth management firms, and how startup robo advisors can succeed as massive legacy companies begin offering their own services.Here are some of the key takeaways from the report:Large incumbent wealth managers won't loseoutto startups like Betterment and Wealthfront. Instead, they are embracing the technology and launching their own products,which are scaling quickly.Consumers across all asset classes are receptive to robo advisorsincluding the wealthy. 49% of this group would consider investing some of their assets using a robo advisor.Themajority of assets managed by robo advisors will come from people who already have some investments. We estimate that the volume of assets that comes from people who don't currently invest will be less than 1% of the total by 2020.Startups are going to find it difficult to scale, and will need to differentiate their products to succeed. They are already doing this by providing white label services to wealth managers, and more customized stand alone solutions.In full, the report:Provides a forecast for the volume of assetsrobo advisors will manage by 2020.Highlightsthe factors that will drive the growth of robo advisorsExplains the different types of robo advisor business model.Details the outlook for incumbents and startup robo advisors in the wealth management industry.To get your copy of this invaluable guide, choose one of these options:Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIPPurchase the report and download it immediately from our research store. >> BUY THE REPORTThe choice is yours. But however you decide to acquire this report, youve given yourself a powerful advantage in your understanding of robo advisors.Join the conversation about this story
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