Robo-Advisors as a Business Model in Germany

Academic Paper from the year 2022 in the subject Economics - Finance, grade: 1,7, International School Of Management, Campus Frankfurt, language: English, abstract: 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).