Key Findings
- 1Robo-advisors didn't disrupt wealth management. Here's what actually will — and how to position for it.
Overview
The robo-advisor revolution was supposed to democratise wealth management and displace traditional advisors. A decade later, robo-advisors manage less than 2% of investable assets globally. The disruption thesis was wrong — but the opportunity is very real.
"The disruption thesis was wrong — but the opportunity is very real."
Platform banks achieve 3-4x higher revenue per customer than product-centric banks — yet only 12% of SA banks have a platform strategy.
The transition from product manufacturer to ecosystem orchestrator is the defining strategic challenge for banking.
Why Robo-Advisors Underperformed
The fundamental error was assuming that wealth management is primarily an investment problem. It's not. It's a trust problem, a complexity problem, and an emotional problem. Algorithms can optimise portfolios, but they can't hold a client's hand during a market crash or navigate the emotional dynamics of estate planning.
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