The banking automation and robo-advisor market is expected to register a CAGR of 12.1% from 2023–2031. Growing demand for digital baking services and adoption of Artificial Intelligence (AI) driven technologies are likely to remain a key banking automation and Robo-Advisor market trend.
Banking Automation and Robo-Advisor Market Analysis
Banking and financial business processes contain a large number of repeated procedures, making them perfect for banking automation technology. While some of this digital revolution has entailed the development of complicated automation tools for investing and fraud detection systems, some of the most important benefits have come from automating smaller, more everyday processes that are common within these institutions. The automated transition has also allowed banks to leverage data to expand their existing product and service offerings.
Banking Automation and Robo-Advisor Market Overview
A robo-advisor is a digital financial advisor who offers financial advice or manages investments with little to no human participation. Robo-advisors are supposed to provide digital advice based on inputs from investors. Robo-advisors use computers to analyze and forecast investor preferences, risks, and objectives. Banking automation and Robo-advisors have altered the financial services business by offering customers efficient and tailored solutions. The market for banking automation and Robo-advisors is growing rapidly due to rising demand for automated financial services, enhanced customer experience, and cost-effectiveness.
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Banking Automation and Robo-Advisor Market: Strategic Insights
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We can optimize and tailor the analysis and scope which is unmet through our standard offerings. This flexibility will help you gain the exact information needed for your business planning and decision making.
Banking Automation and Robo-Advisor Market: Strategic Insights
Naveen
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Naveen will walk you through a 15-minute call to present the report’s content and answer all queries if you have any.
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Banking Automation and Robo-Advisor Market Drivers and Opportunities
Increasing Demand for Digital Banking Services to Favor Market
The growing desire for improved client experiences and expanded use of cloud-based technologies by the banking sector and other financial institutions is driving the expansion of digital banking. A customer-centric approach, data-driven results, and an emphasis on digital experience are critical components of digital banking's success. The main advantages of digital banking include ease of use, a simple sign-up process, decreased transaction fees, customizable features, and an anytime banking capability. All these factors are expected to boost the growth of banking automation and robo-advisor market during the forecast period.
Rising Adoption of Artificial Intelligence (AI) Driven Technologies – An Opportunity in Banking Automation and Robo-Advisor Market
Digital technology is having an impact on practically every industry, changing not only the industries but also the way organizations function. Every industry is currently assessing choices and adopting strategies to prosper in this technologically advanced environment. To meet customer expectations, the banking sector has expanded its reach into retail, IT, and telecom areas, offering services like mobile banking, e-banking, and real-time money transfers. These enhanced features enable users to access banking at their convenience, but they come at a cost to the banking system. Trending banking apps are adopting artificial intelligence for a variety of reasons, including greater competition in the banking sector, a push for process-driven services, consumer requests for more tailored solutions, and increased employee efficiency. All these factors are expected to create lucrative opportunities for the market during the forecast period.
Banking Automation and Robo-Advisor Market Report Segmentation Analysis
Key segments that contributed to the derivation of the Banking Automation and Robo-Advisor market analysis are type and application.
- By type, the market is segmented into robotic process automation, customer service chatbots, and robo-advisors.
- The Robo-advisors segment is expected to grow during the forecast period as robo-advisors automate portfolios, making investments accessible and affordable. Robo-advisors represent a new and strong tool in the financial scene, democratizing access and simplifying portfolio management.
- By application, the market is segmented into BFSI, Government/Public Sector, and Others.
- Based on organization size, the market is segmented into large enterprises and small and medium enterprises.
Banking Automation and Robo-Advisor Market Share Analysis by Geography
The geographic scope of the banking automation and robo-advisor market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America.
North America held a prominent share in the banking automation and robo-advisor market in 2023. This growth may be attributable to rising demand for digital banking services and increased acceptance of automated financial advice. Further, the presence of key market players and early technological adoption are also anticipated to boost the market growth in this region during the forecast period. Asia Pacific region is predicted to grow at a significant pace during the forecast period. This growth may be attributed to the growing digital banking initiatives by the government and the growing adoption of digital banking services.
Banking Automation and Robo-Advisor Market Report Scope
Banking Automation and Robo-Advisor Market News and Recent Developments
The Banking Automation and Robo-Advisor market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the Market for innovations, business expansion, and strategies:
- In 2024, IBM launched a US$500 million venture fund to invest in a range of AI companies - from early-stage to hyper-growth startups - focused on accelerating generative AI technology and research for the enterprise. (Source: IBM, Press Release)
Banking Automation and Robo-Advisor Market Report Coverage and Deliverables
The “Banking Automation and Robo-Advisor Market Size and Forecast (2021–2031)” report provides a detailed analysis of the Market covering the following areas:
- Banking Automation and Robo-Advisor market size and forecast at global, regional, and country levels for all the key market segments covered under the scope
- Market dynamics such as drivers, restraints, and key opportunities
- Banking Automation and Robo-Advisor market trends
- Detailed pest/porter’s five forces and swot analysis
- Banking Automation and Robo-Advisor market analysis covering key market trends, global and regional framework, major players, regulations, and recent market developments
- Banking Automation and Robo-Advisor industry landscape and competition analysis covering market concentration, heat map analysis, prominent players, and recent developments
- Detailed company profiles
Report Coverage
Revenue forecast, Company Analysis, Industry landscape, Growth factors, and Trends
Segment Covered
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to segments covered.
Regional Scope
North America, Europe, Asia Pacific, Middle East & Africa, South & Central America
Country Scope
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to country scope.
The Insight Partners performs research in 4 major stages: Data Collection & Secondary Research, Primary Research, Data Analysis and Data Triangulation & Final Review.
- Data Collection and Secondary Research:
As a market research and consulting firm operating from a decade, we have published many reports and advised several clients across the globe. First step for any study will start with an assessment of currently available data and insights from existing reports. Further, historical and current market information is collected from Investor Presentations, Annual Reports, SEC Filings, etc., and other information related to company’s performance and market positioning are gathered from Paid Databases (Factiva, Hoovers, and Reuters) and various other publications available in public domain.
Several associations trade associates, technical forums, institutes, societies and organizations are accessed to gain technical as well as market related insights through their publications such as research papers, blogs and press releases related to the studies are referred to get cues about the market. Further, white papers, journals, magazines, and other news articles published in the last 3 years are scrutinized and analyzed to understand the current market trends.
- Primary Research:
The primarily interview analysis comprise of data obtained from industry participants interview and answers to survey questions gathered by in-house primary team.
For primary research, interviews are conducted with industry experts/CEOs/Marketing Managers/Sales Managers/VPs/Subject Matter Experts from both demand and supply side to get a 360-degree view of the market. The primary team conducts several interviews based on the complexity of the markets to understand the various market trends and dynamics which makes research more credible and precise.
A typical research interview fulfils the following functions:
- Provides first-hand information on the market size, market trends, growth trends, competitive landscape, and outlook
- Validates and strengthens in-house secondary research findings
- Develops the analysis team’s expertise and market understanding
Primary research involves email interactions and telephone interviews for each market, category, segment, and sub-segment across geographies. The participants who typically take part in such a process include, but are not limited to:
- Industry participants: VPs, business development managers, market intelligence managers and national sales managers
- Outside experts: Valuation experts, research analysts and key opinion leaders specializing in the electronics and semiconductor industry.
Below is the breakup of our primary respondents by company, designation, and region:
Once we receive the confirmation from primary research sources or primary respondents, we finalize the base year market estimation and forecast the data as per the macroeconomic and microeconomic factors assessed during data collection.
- Data Analysis:
Once data is validated through both secondary as well as primary respondents, we finalize the market estimations by hypothesis formulation and factor analysis at regional and country level.
- 3.1 Macro-Economic Factor Analysis:
We analyse macroeconomic indicators such the gross domestic product (GDP), increase in the demand for goods and services across industries, technological advancement, regional economic growth, governmental policies, the influence of COVID-19, PEST analysis, and other aspects. This analysis aids in setting benchmarks for various nations/regions and approximating market splits. Additionally, the general trend of the aforementioned components aid in determining the market's development possibilities.
- 3.2 Country Level Data:
Various factors that are especially aligned to the country are taken into account to determine the market size for a certain area and country, including the presence of vendors, such as headquarters and offices, the country's GDP, demand patterns, and industry growth. To comprehend the market dynamics for the nation, a number of growth variables, inhibitors, application areas, and current market trends are researched. The aforementioned elements aid in determining the country's overall market's growth potential.
- 3.3 Company Profile:
The “Table of Contents” is formulated by listing and analyzing more than 25 - 30 companies operating in the market ecosystem across geographies. However, we profile only 10 companies as a standard practice in our syndicate reports. These 10 companies comprise leading, emerging, and regional players. Nonetheless, our analysis is not restricted to the 10 listed companies, we also analyze other companies present in the market to develop a holistic view and understand the prevailing trends. The “Company Profiles” section in the report covers key facts, business description, products & services, financial information, SWOT analysis, and key developments. The financial information presented is extracted from the annual reports and official documents of the publicly listed companies. Upon collecting the information for the sections of respective companies, we verify them via various primary sources and then compile the data in respective company profiles. The company level information helps us in deriving the base number as well as in forecasting the market size.
- 3.4 Developing Base Number:
Aggregation of sales statistics (2020-2022) and macro-economic factor, and other secondary and primary research insights are utilized to arrive at base number and related market shares for 2022. The data gaps are identified in this step and relevant market data is analyzed, collected from paid primary interviews or databases. On finalizing the base year market size, forecasts are developed on the basis of macro-economic, industry and market growth factors and company level analysis.
- Data Triangulation and Final Review:
The market findings and base year market size calculations are validated from supply as well as demand side. Demand side validations are based on macro-economic factor analysis and benchmarks for respective regions and countries. In case of supply side validations, revenues of major companies are estimated (in case not available) based on industry benchmark, approximate number of employees, product portfolio, and primary interviews revenues are gathered. Further revenue from target product/service segment is assessed to avoid overshooting of market statistics. In case of heavy deviations between supply and demand side values, all thes steps are repeated to achieve synchronization.
We follow an iterative model, wherein we share our research findings with Subject Matter Experts (SME’s) and Key Opinion Leaders (KOLs) until consensus view of the market is not formulated – this model negates any drastic deviation in the opinions of experts. Only validated and universally acceptable research findings are quoted in our reports.
We have important check points that we use to validate our research findings – which we call – data triangulation, where we validate the information, we generate from secondary sources with primary interviews and then we re-validate with our internal data bases and Subject matter experts. This comprehensive model enables us to deliver high quality, reliable data in shortest possible time.
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