Hybrid Robo-Advisors: Here's how incumbent wealth managers are successfully implementing the hybrid robo-advisor model—and a blueprint other legacy players can follow before they make the switch themselves

Executive Summary

The coronavirus pandemic has accelerated the need for hybrid robo-advisors as human advisors can provide additional support during these uncertain times. Wealth managers should look at best practices from other players to inform their hybrid robo-advisor strategies moving forward.

Three Key Questions This Report Will Answer:

• What is the hybrid robo-advisor model, and what are its benefits compared with the conventional wealth management approach, and the fully digital model?
• What does a mature hybrid model look like, and what are key offerings?
• What do the hybrid robo-advisor services four key incumbent players—Vanguard, Schwab, TD Ameritrade, and BlackRock—look like in terms of the onboarding process, portfolio management, human advice, and pricing?

WHAT'S IN THIS REPORT? In this report, Insider Intelligence examines hybrid robo-advisors' operational benefits for incumbents looking to diversify their offerings, and highlights how the pandemic has affected such companies.We define a maturity model for hybrid robo-advisors to showcase important features and capabilities that incumbents should take note of to find success, especially when it comes to adding human financial advice to digital products. The report also spotlights four key incumbent players in the US hybrid robo-advisor space—Charles Schwab, TD Ameritrade, Vanguard, and BlackRock—and evaluates their onboarding processes, technology and human advice, and pricing. Additionally, we discuss key considerations regarding their offerings.