New Needs & New Entrants
Strategic Moves for Next Generation Innovation in Robos & Advice
Order Report - New Needs & New Entrants: Strategic Moves for Next Generation Innovation in Robos & Advice
Overview
This report is from the Hearts & Wallets research collection focusing on saving, investing and advice and leverages analytics and datasets from three proprietary databases.
Fintech and robo-advisor solutions are everywhere. The thousands of competitors and new entrants make it difficult to evaluate where the opportunities lie. This report, drawing from the Investor Quantitative™ Database, explores the blending of technology and live advice solutions, current successes and where the money is going for new entrants, and consumer needs that will likely present future opportunities.
The new 80 page report features 56 exhibits. See table of contents and sample pages below.
Key Findings
- Digital advice is not just for early adopters as all Americans demand more while seeking sources that empower their desire to stay in control. Americans who blend live and technology sources have reached the 50% tipping point, and more affluent customers are testing digital advice as a supplement to human advice.
- Demand for ”new” needs – like support for action-taking – is higher than “old” needs – like asset allocation. Today, over 70% of consumers in accumulator lifestages are interested in new technologies that offer new approaches to saving and investing.
- Robos, as structured, are not winning the mass market. Appeal is highest among experienced investors, organic trial is limited, migration is playing a big role and confusion is rife.
- Fintechs have dramatically increased their awareness and trial, with over half of U.S. households aware of at least one new fintech – up from 36% in 2015.
- Today, the intersection of consumer demand and competitive white space is in “prioritizing saving and spending” and “determining financial actions to take.”
Convenient Options to Suit Your Needs and Budget
Choose access licenses for your team or organization in ways that support how you collaborate.
- Online (1-20 log-ins) - $9,000
- Online with image download (1-50 logs ins) - $12,000
- Online, PDF & PPT (unlimited log ins) - $18,000
Sample Pages
Table of Contents
Executive Summary
Introduction
Key Findings and Implications, Favorite Statistics, Related Research
Key Finding #1. Digital advice is not just for young digital natives, as Americans demand more advice while seeking sources that empower their desire to stay in control.
1.1 Preferred Investment Decision-Making Process: National, 2010-2019
1.2 Sources of Information and Advice – “Myself” as “Go-to/Primary” Source: National, 2010-2019
1.3 Sources of Information and Advice – “Myself” as “Go-to/Primary” Source: By Investable Assets, 2010-2019
1.4 Crosstab of Preferred Investment Decision-Making Process by “Myself” as “Go-to/Primary” Source of Investing Information and Advice: 2019 vs. 2010
1.5 Use of Sources of Investing Information and Advice: National, 2014 2019
1.6 Use of Online as Source of Investing Information and Advice: by Age, by Investable Assets, 2019
1.7 Sources of Information and Advice – Online with Degree of Reliance: National, 2011-2019
1.8 Online Investing Information & Advice Activities – NET Computer or Mobile: National, 2011-2019
1.9 Online Investing Information & Advice Activities – NET Computer or Mobile: National, 2019 vs. 2018
1.10 Use of Online Investing Information & Advice for 1+ Activity, by Device Type: National, 2011-2019
1.11 “Track or Check Accounts” Online, by Device Type: National, 2011 2019
1.12 “Use Financial Planning Tools” Online, by Device Type: National, 2011-2019
1.13 Use of Online Banking and Online Payment Services, by Device Type: National, 2019 vs. 2018
1.14 Crosstabs: Online Investing Activity “Track or Check Accounts” and Use of Online Banking and Payment Services: National, 2019
1.15 Use of Blended Online and Live Advice: National, 2010-2019
1.16 Use of Blended Online and Live Advice: by Age, by Investable Assets, 2019
1.17 Consumer Methods for Blending Online and Live Advice: National, 2019 vs. 2013
1.18 Direction of Innovation: Current Placement of Advice and Guidance Experiences on Inside Advice® Grid from Inside Advice® Benchmarking
Key Finding #2. Demand for ”new” needs like support for action-taking is higher than “old” needs like asset allocation, and gulf has widened since 2015.
2.1 New Needs Framework – Want Help, by Summary Categories: 2019 vs. 2015
2.2 New Needs Framework Element Detail – Want Help: 2019
2.3 New Needs Framework Element Detail – Want Help: 2019 vs. 2015
2.4 New Needs Framework Element Detail – Want Help: by Investable Asset Segments, 2019
2.5 New Needs Framework Element Detail – Want Help: <$100K, 2019 vs. 2015
2.6 New Needs Framework Element Detail – Want Help: $100K-<$1M, 2019 vs. 2015
2.7 New Needs Framework Element Detail – Want Help: $1M+, 2019 vs. 2015
Key Finding #3. “Robos” as structured are not winning the mass market. Appeal is highest among experienced investors, organic trial is limited, migration is playing a big role and confusion is rife.
3.1 Robos/Automated Portfolios Ownership Rates: National, 2019 vs. 2018
3.2 Robos/Automated Portfolios Ownership Rates – Number of Households: National, 2019 vs. 2018
3.3 Robos/Automated Portfolios Ownership Rates: by Generation, 2019 vs. 2018
3.4 Robos/Automated Portfolios Ownership Rates: by Generation, by Investable Assets, 2019
3.5 Dollars Invested in Robos/Automated Portfolios: 2019 vs. 2018
3.6 Dollars Invested in Robos/Automated Portfolios: by Investable Assets, 2019
3.7 Crosstab: Ownership of Robos/Automated Portfolios and Experience with Investing: 2019
3.8 Crosstab: Use of Financial Professionals as Source of Information and Advice and Ownership of Automated Portfolios, 2019
3.9 Crosstabs: Attitude "I’d prefer one product that combines different investments to accomplish a goal, over me or an advisor assembling a portfolio of many component investments“ and Ownership of Automated Portfolios, 2019
Key Finding #4. Fintechs dramatically increased their awareness and trial, with over half of U.S. households aware of at least one new fintech, up from 36% in 2015.
4.1 Awareness of Any New Entrants: National, 2019 vs. 2015
4.2 Awareness of Any New Entrants: by Lifestage, 2019 vs. 2015
4.3 Awareness of New Entrants by Company: National, 2019 vs. 2015
4.4 Awareness of New Entrants by Company: by Investable Assets, 2019
4.5 Composition of Consumers Aware of Top New Entrants: by Investable Assets, 2019 vs. 2015
4.6 Composition of Consumers Aware of Top New Entrants: by Lifestage, 2019 vs. 2015
4.7 Awareness & Interest/Trial of New Entrants by Company: 2019
4.8 Interest/Trial of New Entrants by Company: 2019
4.9 Trial of New Entrants Involved Money: Deposited Money or Paid for Advice, by Company, 2019
4.10 Trial of New Entrants Involved Money: Among Those Aware and Overall, by Company, 2019 vs. 2015
Key Finding #5. Today, the intersection of consumer demand and competitive white space is in “prioritizing saving and spending” and “determining financial actions to take.”
5.1 New Needs Framework Element Detail – Want Help: 2015
5.2 Portrait™ Market Sizing Exercise: Overlooked Consumer Risk of Disruption, 2018
5.3 New Needs Framework Element Detail – Want Help: 2019
5.4 Portrait™ Market Sizing Exercise: Advice on Next Dollar Saved, 2018
5.5 New Needs Framework Competitive Landscape: Evaluation of Public Capabilities, August 2020
5.6 Crosstabs: Want Help “Budgeting and Prioritizing Spending and Saving” and Attitude ”See Value in Paying for Professional Advice”: 2019 vs. 2010
5.7 Crosstab: Want Help “Budgeting and Prioritizing Spending and Saving” and Attitude ”My Advisor is a Partner to Me”: 2019
5.8 Crosstab: Want Help “Budgeting and Prioritizing Spending and Saving” with Importance of Want from Firm “Has Low Fees” and “Fees are Clear and Understandable”: 2019
5.9 Hypothetical Example: How a “Robo”/Automated Portfolio Makes Money through Cash, Fees & Subscriptions without Asset Management Fees
Appendix
Data Dictionary
Glossary, Sample Sizes
Use Contact Us to request more information. We look forward to hearing from you!
*Clients must demonstrate appropriate standards of use and library controls to be eligible for Enterprise+. In addition to the PDF for storage in internal reference library, Enterprise+ users may also access the Hearts & Wallets Client Portal and slide download features.
Select the desired report(s) and send a signed copy of this form to info@heartsandwallets.com or fax to 800-930-0966. We will prepare a separate invoice for payment.
By signing this form, I certify that I am authorized to make this purchase on behalf of my company (“Customer”) and that Customer agrees to the following terms. Hearts & Wallets grants Customer a limited, non-exclusive, non-assignable license to use the Hearts & Wallets’ report for Customer’s private, internal use only. Customer shall not use any portion of the report for external use. Customer shall not share the report with any third-party, shall not permit other persons to use the report, shall not create derivative works based upon the report, and shall not sell, lease, or otherwise transfer rights to the report. Any such forbidden use shall immediately terminate Customer’s license to the report. All title, ownership, rights, and intellectual property rights in the report shall at all times remain vested in Hearts & Wallets. Customer does not receive any ownership rights or intellectual property rights in the report. Upon receipt of this report, Customer accepts the report and agrees to pay the amount specified.