Forrester’s Take: Charles Schwab Joins Robo-Advisor Ranks
With the launch of Schwab Intelligent Portfolios, the robo-advisor market moves one step closer to mainstream adoption — changing investor expectations about where the best advice comes from, what it should cost, and how it’s best delivered, writes Forrester in new research.
Schwab recognized the need to disrupt its business model before another digital upstart like Wealthfront continued to make waves in this growing industry. Other incumbent firms must face this reality and take steps to disrupt the business model to bring new value to customers — even if it undercuts traditional managed accounts.
The good news for incumbents: Demand is robust. Schwab conservatively estimates the overall market size at $400 billion of assets under management, and “unlike winner-take-all categories such as Internet search, digital investment management can support multiple winners, focusing on different strategies and investor segments,” writes Vice President and Principal Analyst Bill Doyle in the new research.
To learn more about Forrester’s take on robo-advisors and Schwab Intelligent Portfolios, visit the new research here.