(Opalesque) Following the footsteps of WorthFM, SheCapital and Owners Advisory, New York-based avant-garde robo advisor Hedgeable has finally called it quits on 9 August 2018, just short of its 10-year anniversary. Even though there is mounting evidence that standalone robo-advice alone will not attract affluent investors, leading data and analytics company GlobalData, says that it will offer competitive advantage to traditional wealth managers over competitors.
Robo-advisors by themselves do not attract assets under management (AUM). In addition, high-net-worth (HNW) investors are not flocking to transfer their assets to standalone challenger platforms. GlobalData’s 2018 survey of wealth managers found that just 10% of private wealth managers feared they would lose market share to robo-advisors over the next 12 months. Indeed, as can be seen from the reports of many robo-advisors, their clients are entrusting only small portfolios to the digital-only platforms.
