From digital asset management to robo advisors: a flourish of strategies and initiatives

The global Asset Management market, with over 83 trillion dollars managed worldwide in the second quarter of 2016, has historically been dominated by investment funds, retirement funds and insurance companies (Incumbents), for the most part based in the USA, where the split among the three is just about even. Over 19 trillion dollars are managed in Europe, of which 42% by insurance companies and 51% by investment funds. This division clearly shows a limited adoption of retirement funds by European citizens. One trillion dollars is managed in Italy, over 69% of which by insurance companies, the remaining 23% by investment funds, and less than 8% by retirement funds (Source: Digital Innovation Observatories processing of OCSE data, not including the UK). On the basis of such considerations, the Report analyzes the Digital Asset Management and Robo Advisor scenario at Italian and international level. The impact of digital technology in Asset Management is analysed through an extended survey of 185 traditional players and over 130 Startups, with the goal of better clarifying what the opportunities, the strategies and the threats facing Incumbents are and the characteristics of Robo Advisors.