There are 6 Fintechs in the B2B space, with white label offerings, or modules to build in a few weeks a tailored made solution, or tailored for financial advisors.
There are 15 Fintechs in the B2C space which I split into first generation robos and second generation robos:
I consider first generation robos those that deal only with ETFs, mostly use MPT theory for asset allocation, and rarely have “Can I reach you?” capabilities.
Fiver a Day
Money on toast
I consider second generation robos those that allocate investments not only to ETFs, but stocks or mutual funds; are focused on risk management for re-balancing; allow for partly discretionary management (i.e. 100% auto asset allocation) and partly DIY (non-discretionary management); offer “Can I reach you?” services.
From these 15 Robo-advisors that are targeting consumers directly, 5 are also available in other European countries
ETF matic UK+5 European countries
Money farm UK - Italy
Scalable Capital UK - Germany
Zen Assets UK+non-UK
Interesting post. I would add to the list “Gear investments” who fit into the B2C and ETF space.
How do UK robo-advisors (all forms) compare to US roboadvisors in terms of awareness and AUM? US robos - be it stand alone (Betterment/ Wealthfront) or Incumbent (Schwab/ Vanguard) or Partnership (FutureAdvisor/ SigFig) - seem to be better known than UK robo advisors. Is this true? If so, why?
Thanks Sergio, good suggestion and welcome to Fintech Genome - our mission is to enable great conversations. Don’t forget to fill out your Bio e.g. a Picture of you.
Thanks S2E_Consulting and welcome to Fintech Genome - our mission is to enable great conversations. Don’t forget to fill out your Bio e.g. a Picture of you (or company logo if you prefer but people prefer conversations with people).
Hi Efi, Might I ask what might seem a naive question. In terms of data analysis in the real-time global financial markets IBM Watson - Google Deep Learning who / which are the main (guess limited)
providers to the leading banks. I am not talking about a robo advisory
startups, The super computers are few in number and currently have many advantages, I understand each & all data input results in variant results but the core maths underlying the analysis run through Google Deep Learning by leading financial institutions would show the same results ? So whichever has the deep pockets to enlist IBM Watson - Google Deep Learning would be adviser I would want ? Or have I lost the plot.
@Jonathan you are opening a broad topic. I will try to confine it in two statements:
- There are those that are believers in low cost passive investing as a decent life-long strategy (the Vanguard’s and most startup robo-advisors)
- On the other end, there are those that beleive that you can and should seek to capture alpha and then the question is whether, the IBM Watson-Google Deep learning, are the ones that will dominate. Is this a part of the market, that the “winner takes all?”.
- The issue you raise is complex and includes Big Data analytics for alpha generation. Who are the current players? Who will be the winners?
- Last but not least, there are others who believe that some combination of low cost indexing and alpha based on Big data analysis, can make our retirement really great.
The verdict is out there.
@jonathan, why dont you want to open up a new topic on Big Data analytics successes for alpha generation?
I am sure @pierre.mendelsohn has alot to say on this.
Efi My thanks but I do not feel comfortable posting/discussing “Big Data analytics successes for alpha generation?” I am not proficient in the financial analytics. My thoughts are that the banks/ financial institutions talk of robo advice, meanwhile Google Deep Learning is moving to better understand the AI 2 AI approach to data and the now (not quite understood) new results. This surely means the leading banks keep data analyses in-house will be at a great disadvantage to those investment arms would enlist Google Deep Learning to better understand the AI 2 AI approach to data ? In short the cards are stacked against those that do not. This is from someone who does not have investments. Perhaps @pierre.mendelsohn will pick up on this.
Singular Intelligence (a UK FinTech in Oxford, http://www.singularintelligence.com/) is a Big Data company. But they are ready with a Robo-and-Advisor type of model. Basically a Robo-Advisor for bankers serving the clients. I like this company.