This story was delivered to BI Intelligence "Fintech Briefing" subscribers. To learn more and subscribe, please click here.Uber drivers in Seattle, Boston, New Jersey, and Chicago can now open a Betterment IRA or Roth IRA with no required minimum deposit and no fee for the first year. Betterment's offer is exclusive to Uber drivers, and Uber plans to make the service available to all of its US driversaround 600,000 "soon."Betterment will likely see high adoption from Uber employees. Unlike many US employers, Uber doesn't offer its drivers a retirement plan as part of a benefits package. This means that Betterment won't face competition from an existing plan for the drivers' business. In addition, there may be opportunities for similar partnerships with other startups, as retirement plans can be expensive for employers to provide and out of the budget for many new firms. This suggests that startups could be a highly lucrative market for robo-advisors.Meanwhile, other robo-advisors are adopting a different approach.FutureAdvisor has entered into the type of partnership that we'd more readily expect to see from robo-advisors. It said this week that it would starttoofferits servicesto US Bank's investment clients as of 2017. This approach provides more obvious benefits to both parties, as it gives the robo-advisor access to the clients of a wealth manager, and helps the legacy player increase its range of products.Robo-advisorsare threatening to upend the enormous global wealth management industry in several ways, and they are likely to arrive in full force within the next few years.Sarah Kocianski, senior research analyst for BI Intelligence, Business Insider's premium research service, has compiled a detailed report on robo-advising that looks at the market for robo-advisory services, the drivers behind consumer adoption of robo-advising, why the robo-advisor market presents an opportunity to traditional wealth management firms, and how startup robo-advisors can succeed as massive legacy companies begin offering their own services.Here are some of the key takeaways from the report:Large incumbent wealth managers won't loseoutto startups like Betterment and Wealthfront. Instead, they are embracing the technology and launching their own products,which are scaling quickly.Consumers across all asset classes are receptive to robo-advisorsincluding the wealthy. 49% of this group would consider investing some of their assets using a robo-advisor.Themajority of assets managed by robo-advisors will come from people who already have some investments. We estimate that the volume of assets that comes from people who don't currently invest will be less than 1% of the total by 2020.Startups are going to find it difficult to scale, and will need to differentiate their products to succeed. They are already doing this by providing white label services to wealth managers, and more customized stand alone solutions.In full, the report:Provides a forecast for the volume of assetsrobo-advisors will manage by 2020.Highlightsthe factors that will drive the growth of robo-advisorsExplains the different types of robo-advisor business model.Details the outlook for incumbents and startup robo-advisors in the wealth management industry.To get your copy of this invaluable guide, choose one of these options:Subscribe to an ALL-ACCESS Membership with BI Intelligence and gain immediate access to this report AND over 100 other expertly researched deep-dive reports, subscriptions to all of our daily newsletters, and much more. >> START A MEMBERSHIPPurchase the report and download it immediately from our research store. >> BUY THE REPORTThe choice is yours. But however you decide to acquire this report, youve given yourself a powerful advantage in your understanding of robo-advisors.Join the conversation about this story
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