This is why Wall Street banks aren't scared of the robot army coming to destroy them
APRobo-advisers would like to become banks' overlords. Banks say that's not likely. If big banks' top wealth managers are worried about the coming wave of robo-advisers, they're not showing it.
"I don't believe, at the end of the day, that [robo-advisers] are going to capture the high net worth audience. Advice, to me, is still the premium," said David Satler, COO with Barclays wealth and investment management group.
Satler spoke at SourceMedia's InVest event in midtown Manhattan Friday, where he was joined by senior wealth management executives from Citigroup and Merrill Lynch.
Oner person who agreed with Satler was Steffen Binder, co-founder of MyPrivateBanking research.
Binder said that robo-advisers take up a small portion of the wealth management market ("something like 0.1% of assets from investors worldwide") and that the robo-advisor business is easliy attacked by incumbants.
Binder also provided these charts:
http://www.myprivatebanking.com/Big banks and Wall St. advisers are expected to claim most of the money that robo-advisers are targeting.
Now, a closer look at the startups' expected piece of the pie:
http://www.myprivatebanking.com/... But the startups aiming at big banks are still expected to grow exponentially in coming years.