Robo-advisors were once all the rage in the world of fintech and digital financial services. But has the luster worn off?
According to CB Insights data, VC funding for investment apps has fallen from nearly $1 billion in Q2 2018 to about $400 million in Q2 2019.
American Banker posits that the reason may have to do with the fact that many incumbents have either acquired or built their own digital app advisers. Many banks and brokerage firms offer robo-advising services within larger digital offerings.
It will be interesting to see if the standalone investment app goes the way of the dodo, ultimately being acquired by or folded into broader digital services.