Since its introduction and especially in the last two decades, the Internet and its underlying technology have influenced and in some cases revolutionized almost all areas of life. The financial sector has also been permanently changed by innovations such as online banking, cryptocurrency and automated investment advice. The latter has also gained a foothold in the form of robo-advisors -algorithm-based tools that provide financial advice and portfolio management within strictly regulated legal requirements, often combined with personal advice from an investment advisor.
According to data from Statista Market Insights, an estimated 2.76 trillion U.S. dollars will be managed by robo-advisors in 2023 - a massive increase on even as recently as 2017. By 2027, assets under management are expected to reach just past the $4.5 trillion mark. Estimated total revenue of robo-advisors has also seen explosive growth over the past six years. While in 2017 the figure was just $7.1 billion, by 2023 the market is expected to generate sales of almost $110 billion.
