Robo-advisors. Opportunity or threat for the german wealth management industry?

Table of Contents

• INTRODUCTION
• LITERATURE REVIEW
  • DEFINITION OF ROBO-ADVISORY CONCEPT
    • HOW IS A "ROBO-ADVISOR" OPERATING?
    • HOW TO CHOOSE THE BEST ROBO-ADVISORS?
    • ADVANTAGES OF ROBO-ADVISORS
    • DISADVANTAGES OF ROBO-ADVISORS
• FACTORS DRIVING THE EVOLUTION OF THE WEALTH MANAGEMENT INDUSTRY
  • TRENDS OF THE WEALTH MANAGEMENT INDUSTRY
    • DEMOGRAPHICAL CHANGES
    • MILLENIALS AND THEIR CHANGING INVESTMENT BEHAVIOURS
    • TECHNOLOGICAL CHANGES
    • CHANGING INVESTMENT ENVIRONMENT
• ROBO-ADVISORS FROM A REGULATORY POINT OF VIEW
  • MIFID II AND IMPLICATIONS
• RESEARCH
• METHODOLOGY
• MARKET RESEARCH OF THE ROBO-ADVISORY AND FINTECH INDUSTRY
  • FINTECHS IN GERMANY
    • DEFINITION OF FINTECHS
    • SIZE OF THE GERMAN FINTECH MARKET
    • CONCENTRATION OF THE GERMAN FINTECH MARKET
    • SEGMENTATION OF THE GERMAN FINTECH MARKET
  • ROBO-ADVISORS
    • GLOBAL ROBO-ADVISORY MARKET SIZE
    • U.S ROBO-ADVISORY COMPANIES CHARACTERISTICS
    • RED MARKET OCEAN: GERMAN ROBO-ADVISORY MARKET
      • CONCENTRATION OF THE GERMAN ROBO-ADVISORY MARKET
      • SIZE OF THE GERMAN ROBO-ADVISORY MARKET
      • SELECTION OF GERMAN ROBO-ADVISORY PLAYERS & COMPARAISON CRITERIAS
• ROBO ADVISORS FROM A STRATEGIC POINT OF VIEW
  • POTENTIAL CLIENTS OF ROBO-ADVISORS
  • STRATEGIES FOR ROBO-ADVISORY PLAYERS TO INCREASE THEIR CUSTOMER BASE
  • STRATEGIC ALLIANCES
    • PARTNERSHIPS
    • SELLING THE TECHNOLOGY
    • DEVELOPING IN-HOUSE ROBO-ADVISORY CAPABILITIES
• LEVEL OF ATTRACTIVENESS OF THE WEALTH MANAGEMENT INDUSTRY
  • INTRODUCTION AND DEFINITION OF THE CONCEPTS
  • PRESENTATION OF PORTER'S FIVE FORCES FRAMEWORK
    • PRESENTATION OF THE RANKING MODEL
    • OUTCOMES OF PORTER'S FIVE FORCES FRAMEWORK
      • THREAT OF ENTRY
      • RIVALRY BETWEEN ESTABLISHED PLAYERS
      • POWER OF BUYERS
      • POWER OF SUPPLIERS
      • COMPETITION FROM SUBSTITUTES
• INTERVIEWS

Objectives and Key Themes

This research project aims to analyze the impact of robo-advisors on the German wealth management industry, examining whether they represent an opportunity or a threat. The study investigates the market landscape, regulatory environment, and strategic implications of robo-advisors in Germany.

• The definition and functionalities of robo-advisors.
• The impact of demographic and technological changes on the wealth management industry.
• The regulatory framework (e.g., MiFID II) and its influence on robo-advisors.
• The competitive landscape and market size of the German robo-advisory and Fintech markets.
• Strategic considerations for wealth management firms regarding robo-advisors.

Chapter Summaries

INTRODUCTION: This chapter sets the stage for the research, introducing the context of robo-advisors within the German wealth management industry. It outlines the study's significance from academic and economic perspectives, formally stating the research question and objectives, and finally, detailing the structure of the research project itself.

LITERATURE REVIEW: This chapter provides a comprehensive definition of robo-advisory, explaining their operational mechanisms, including online questionnaires and functionalities. It explores the criteria for choosing a robo-advisor, weighing their advantages and disadvantages. This foundational understanding paves the way for a deeper exploration of the robo-advisor’s impact on the German financial landscape.

FACTORS DRIVING THE EVOLUTION OF THE WEALTH MANAGEMENT INDUSTRY: This chapter analyzes the key trends shaping the wealth management industry, including demographic shifts (especially the influence of millennials and their investment habits), technological advancements, and the evolving investment environment. These factors are crucial in understanding the context within which robo-advisors are emerging and gaining traction.

ROBO-ADVISORS FROM A REGULATORY POINT OF VIEW: This section delves into the regulatory landscape surrounding robo-advisors, particularly focusing on the implications of MiFID II (Markets in Financial Instruments Directive II). It examines how regulations shape the operations, capabilities, and growth potential of robo-advisory firms in Germany. This regulatory analysis is critical for assessing the long-term viability and sustainability of this sector.

MARKET RESEARCH OF THE ROBO-ADVISORY AND FINTECH INDUSTRY: This chapter provides a detailed market analysis of the German Fintech and robo-advisory sectors. It defines Fintechs, assesses the market size and concentration, and segments the market to understand the competitive landscape. It further examines global and US robo-advisory markets to provide a comparative perspective on the German market’s unique characteristics and challenges.

ROBO ADVISORS FROM A STRATEGIC POINT OF VIEW: This chapter explores the strategic implications of robo-advisors for wealth management firms. It identifies potential client segments for robo-advisors and analyses strategies firms can use to increase their customer base. This includes examining various strategic alliances such as partnerships, selling technology, and developing in-house robo-advisory capabilities. This section bridges the gap between market analysis and strategic decision-making.

LEVEL OF ATTRACTIVENESS OF THE WEALTH MANAGEMENT INDUSTRY: This chapter uses Porter's Five Forces framework to analyze the attractiveness of the German wealth management industry. It examines factors such as threat of new entrants, rivalry among existing firms, buyer and supplier power, and the threat of substitutes. This analysis offers a holistic view of the industry's competitive dynamics and provides context for understanding the potential opportunities and challenges posed by robo-advisors.

Keywords

Robo-advisors, wealth management, Fintech, Germany, MiFID II, market analysis, strategic alliances, technological change, demographic trends, investment behavior, millennials, Porter's Five Forces.

Frequently Asked Questions: Analysis of Robo-Advisors in the German Wealth Management Industry

What is the main topic of this research project?

This research project analyzes the impact of robo-advisors on the German wealth management industry, examining whether they represent an opportunity or a threat. It investigates the market landscape, regulatory environment, and strategic implications of robo-advisors in Germany.

What are the key themes explored in this research?

The research explores several key themes, including the definition and functionalities of robo-advisors; the impact of demographic and technological changes on the wealth management industry; the regulatory framework (e.g., MiFID II) and its influence on robo-advisors; the competitive landscape and market size of the German robo-advisory and Fintech markets; and strategic considerations for wealth management firms regarding robo-advisors.

What is a robo-advisor, and how does it operate?

The research provides a comprehensive definition of robo-advisory, explaining their operational mechanisms, including online questionnaires and functionalities. It explores the criteria for choosing a robo-advisor, weighing their advantages and disadvantages.

What are the factors driving the evolution of the wealth management industry?

The study analyzes key trends shaping the wealth management industry, including demographic shifts (especially the influence of millennials and their investment habits), technological advancements, and the evolving investment environment.

What is the role of regulation, specifically MiFID II, in the robo-advisory landscape?

The research delves into the regulatory landscape surrounding robo-advisors, focusing on the implications of MiFID II. It examines how regulations shape the operations, capabilities, and growth potential of robo-advisory firms in Germany.

What is the size and structure of the German robo-advisory and Fintech markets?

The research provides a detailed market analysis of the German Fintech and robo-advisory sectors. It defines Fintechs, assesses the market size and concentration, and segments the market to understand the competitive landscape. It also compares the German market to global and US markets.

What are the strategic implications of robo-advisors for wealth management firms?

The research explores strategic implications for wealth management firms, identifying potential client segments and analyzing strategies to increase customer base, including examining various strategic alliances (partnerships, selling technology, and developing in-house robo-advisory capabilities).

How attractive is the German wealth management industry, according to Porter's Five Forces?

The research uses Porter's Five Forces framework to analyze the attractiveness of the German wealth management industry, examining factors such as threat of new entrants, rivalry among existing firms, buyer and supplier power, and the threat of substitutes.

What is the methodology used in this research?

While the specifics of the methodology are not detailed extensively in the provided preview, the research includes a dedicated "Methodology" chapter.

What are the key findings or conclusions of the research?

The provided preview does not present the full conclusions of the research. The full research paper would contain a dedicated conclusions chapter summarizing the key findings.

What keywords are associated with this research?

Keywords associated with this research include: Robo-advisors, wealth management, Fintech, Germany, MiFID II, market analysis, strategic alliances, technological change, demographic trends, investment behavior, millennials, Porter's Five Forces.