Fintech robo advisors are blanketing the financial landscape – the robo advisory market is expected to reach between $2.2 trillion to $3.7 trillion in assets under management by 2020 and $16 trillion by 2025.
Yet, robo advisors aren’t a uniform investment management solution and vary among companies.
The drivers for this financial explosion are investment strategies based on Harry Markowitz’s Nobel prize-winning modern portfolio theory and investment management priced at a fraction of typical financial advisory fees. Legacy investment management fees of 1.5 percent have dropped to zero with many robo advisor platforms.
