Automated financial advisor apps and services are expected to manage approximately 10% of all global assets under management (AUM) by 2020. Let's take a closer look at the robo-advisor segment in Brazil:
Contribution received from third parties: BRL 80,000 for the acceleration program SEED. Also received an angel investment from Wilson Brumer, former Secretary of Economic Development of the State of Minas Gerais, founders' home state, of uninformed value.
It is worth emphasizing that, although the robot automates the choice of investments, its success depends on the people who build the algorithm. "Although the robo-advisor investments are automated, the strategy behind the algorithms is necessarily human," explains Magnetis' Luciano Tavares.
The size of the market
Brazilian robo-advisors are eyeing people who keep money in applications that yield little or are costly. Today, Brazilians together hold over BRL 600 billion in savings, with Treasury Direct applications as well as private securities with a higher net income and similar security. Still, there are private firms challenging big banks with higher profitability.
According to Felipe Sotto-Maior, CEO of Vérios, there is a lot of space in the market for robots to grow. "Today, customers in the segments that banks classify as Retail and High-Income Retail together have about BRL 1.5 trillion in products of low profitability."
Magnetis also has plans to take clients out of the banks. "Our goal is to manage BRL 1 billion in investments by 2019," says Magnetis CEO Luciano Tavares.