Slides from the Robo-Investing Europe 2019 Opening Keynote.

3. The robo-advice market is growing, but changing
• The numberofrobo-advisorusers has tripled since2017to almost 46million worldwide.That
numberis expected to continueon and hit 147million by 2023
• The fastest growth in nicherobo-advisors has been in pensions and retirement.Thereis over $27
trillion in retirement assets,and by 2025,therewill be163baby boomers per1 financial advisor
• Only 23percent ofthoseover55 were interested in socially responsibleinvesting,whileover55
percent ofthoseunder45were interested.

4. By 2030, millennials are expected to hold $25T of wealth
globally
Source: US Census Bureau, Survey of Income and Participation, 2014. Deloitte Center of Financial Services, “The Future of Wealth in the United States”. Mortality table from Social Security Administration,
Ribbit team analysis.

6. Digital wealth firms focus on re-bundling
Re-bundling
Entry product Robo-advisor Robo-advisor Micro-investing Micro-investing
College Savings
Lending
Savings account
Debit card
Digitalbroking Robo-advisor
Savings account
Debit card
Savings account
Debit card
Savings account
Debit card
Savings
account*
Debit card*
*Robinhood is planning to relaunch the high yield savings account in 2019
Savings account
Debit card
Lending

8. A rush of robo-bank partnerships drive robo-expansion
Bankpartner
Robo-advisor Robo-advisor Micro-investing Micro-investing Digitalbroking Robo-advisorEntry product

9. Morgan Stanley focus on future millennial investors
MorganStanleyacquiredSolium Capital for $900 million
Solium manages the equity plans of 1M employees across more than 3000
companies. Morgan Stanley is looking at Solium’s young, salaried clients as
the future affluent customers of its wealth management arm

11. New product niches for millennial investors: passion assets
Cars Marine Sneakers Municipal bonds
Music Collectibles Tokenized Real estate

12. Rally RD: eBay moment in wealth management

13. New product niches for investors: crypto robo-advisory
Specialist crypto robo-
advisors
Robo-advisors with crypto
investments
Traditional financial
institutions

14. New customer niches: behavioural investment apps
Impact Women Sharia Couple Micro

15. New customer niches: impact investment

17. Robo-advisors are narrowing their focus to grow market share
John Hancock partnered with NextCapitalto automate retirement
services including 401(k) robo advice and paperless IRA rollovers
John Hancock developedthree robo products for specialized customer groups
COIN, A Values-Based Investment Platform, offers personalized portfolios aligned with United
nations sustainable development goals
Twine is designed for committed partners who want to save and invest together
Jan 2017
Nov 2017
Mar 2019

18. Your margin is my opportunity!
2.57%2.69%
APY
Wealthfront
Cash account
Betterment
Everyday account
Ally BankMarcus by
Goldman Sachs
Capital One
360 Savings
Industry
average
APY Comparison
2.15%
2.10%
1.00%
0.10%

19. Disrupting the disruptors: Charles Schwab
• It’s not just Apple that’s betting big on subscriptions.
• Schwab Intelligent Advisory, which includes unlimited guidance from a CFP and an in-depth
financial plan, will charge new customers an upfront fee of $300 and a flat $30 a month
starting on April 1, instead of the current 0.28% of assets. The hybrid robo service is being
renamed Schwab Intelligent Portfolios Premium.
• Schwab’s robo-advisor has added $1 billion in new client assets in the last three months —
is attracting younger clients with bigger accounts, Bernie Clark
• About 37% of clients on the digital advice platform are new to Schwab
• The average account size is about $300,000 to $400,000

21. Tech impact variance is staggering
Financial planning Tech survey, 2017 Financial planning Tech survey, 2018

22. Disrupting the disruptors: Vanguard
• AUM: $115 billion
• Vanguard’s service is wealth advice offered over the phone, with a digital platform as the front
“We believe our model, which integrates a robust online experience, advanced technology, and a
human advisor, will continue to resonate with clients seeking comprehensive financial planning”

24. What’s killing the robo-advisors?
• Operating losses
• Higher software costs
• Tough competition from
free robo-Advisors
• Cost of client acquisition is
high: $300
2015-2016 2009-20182015-2019
2015-2018 2017-20192016-2018
Independent robo-advisors
Bank-backed robo-advisors
2017-2019