Robo Advisor Companies in the Canadian Marketplace

Goals

To provide an overview and outlook for Robo Advisor companies in the Canadian marketplace that will include major players in the market and trends in order to prepare a sales presentation to Wealth Simple's advertising agency.

Early Findings

Our initial research on Robo Advisor companies in the Canadian marketplace revealed insights. Here are key pieces of information we found:

Robo Advisor Companies in the Canadian Marketplace

Overview & Outlook:

  • Assets under management in the Robo Advisors segment of the Canadian marketplace amounts to US$8,158m in 2020.
  • The average assets under management per user in the Robo Advisors segment amounts to US$20,885 in 2020.
  • Assets under management in the Robo Advisors segment are expected to show an annual growth rate (CAGR 2020-2023) of 26.7% resulting in the total amount of US$16,610m by 2023.
  • In the Robo Advisors segment of the Canadian marketplace, the number of users is 390.6 thousand in 2020 and is expected to amount to 761.0 thousand by 2023.
  • Major players in the Canadian marketplace for the Robo Advisors segment are: BMO SmartFolio, Invisor, Justwealth, Modern Advisor, NestWealth, Questwealth Portfolios, RBC InvestEase, Wealthbar, and Wealthsimple.
  • In 2020, an ongoing trend is large investment funds implementing robo-advisory technology as the efficiency of automated portfolio management promises high return rates compared to old-fashioned alternatives.
  • An emerging trend is humanizing Robo Advisors by adding a human face to supplement the technology behind the Robo Advisor itself to include human components like being paired with a financial advisor, the ability to call a live advisor, or chat online with someone before changing your long-term financial plan.

Proposed next steps:

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