A report by Deloitte projects a spectacular rise in the amount of assets managed on digital platforms over the next eight years, AltFi writes. But is it possible that robo-advisors will command more assets than incumbent behemoths such as BlackRock?
Who'll Control the Most Assets?
Deloitte estimates that robo-advisors platforms will command $2.2 trillion by 2020 and a whopping $16 trillion by 2025, according to AltFi. That’s roughly three times the amount of assets currently on BlackRock’s platform, the world’s largest asset manager, according to the report.
However, Deloitte suggests that traditional asset managers will likely continue controlling a high proportion of overall assets, AltFi writes. And according to AltFi, BlackRock will benefit directly from the shift to passive investing that resulted from the proliferation of robo-advisors. And the asset manager is participating in the expansion of digital wealth managers as well, having taken a sizable stake in the online platform Scalable Capital. What’s certain, according to Deloitte, is that digitization will affect the entire wealth management industry, AltFi writes.
