This term paper will evaluate Robo Advisors as a product and examine, the business model in comparison to the classical retail banking approach. To do this, the term retail banking will be explained in chapter two. Subsequently, in chapter three, Robo Advisors will be first described in general, then viewed as a product and finally critical evaluated. In chapter four, the last chapter, the Robo Advisor ROBIN of Deutsche Bank will be described.
In connection with the current trend to invest money in passive investment products, a lot of private investors used Robo Advisors to build a portfolio and get the portfolio managed. A Robo Advisor is an online portfolio management solution, utilizing mathematical algorithms to make investment decisions. Robo Advisors primary invest the customers money in Exchange Traded Funds (ETFs).
Table of contents
List of figures
1 Introduction
2 Retail banking
3 Theoretical introduction to Robo Advisors
3.1 What are Robo Advisors
3.2 Robo Advisors as a product
3.3 Critical evaluation of Robo Advisors
4 Example: ROBIN
5 Executive Summary and outlook
Literature