The disruptive development of Fintech continues. A study from the CFA institute shows Robo-advisors taking a leading role. 88% of survey respondents anticipate that Robo-advisors will replace human advisors. The Frankfurt based Robo-advisor Ginmon has a monthly customer growth rate of 30 percent and has entered its series A financing round.
Fintechs continue to disrupt the finance industry with great effect, especially in the wealth management. A CFA Institute study from spring 2016 shows that 40 percent of finance experts predict that Robo-advisors will have the greatest impact on the financal industry. Within the private customer sector, respondents believe that seven of eight private customers would take Robo-advice into consideration. A study from the “FOM University of Applied Sciences for Economics and Management“ arrived at the same conclusion: 62 percent of young professionals surveyed do not make use of traditional banking advisory services.
Lars Reiner, founder and CEO of Ginmon, agrees with these results, “The demand has increased significantly. We have witnessed a monthly growth rate of 30 percent.” Stefan Glänzer, partner at London based Passion Capital, impressed with this growth, explained, “We are convinced, that Robo-advisors will change the investment landscape in Germany. This growth rate proves that we made the right decision.”
Passion Capital was one of the largest investors in Ginmon’s first financing round, which was concluded in August 2016 and has been four times oversubscribed. The venture capital firm will also take part in Ginmon’s second financing round. At eight digits, it is currently the biggest financing round for a Robo-advisor in Germany.