Impact of Roboadvisors and Blockchain on Revenue Pools by Industry

Autonomous Research estimates that the Blockchain and Roboadvice technologies will impact over $900 billion in revenue, reducing it by approximately $250 billion. The revenue pool from 2016 is derived from revenues in: (1) business cross border payments, (2) investment management, (4) remittance payments, (5) capital markets and (6) title insurance. It is estimated that the impact of Fintech will consist of reductions of $44 billion from Roboadvice and $204 billion from Blockchain in the form of digital ledgers.  All areas of the revenue pool will be reduced as a result of these technologies, with the exception of capital markets as their revenues rise from $212 to $234 billion.

On the second chart, we looked at the specific impact each technology will have on the respective industry. It shows that Roboadvice will solely affect inventory management as it reduces the industries revenues by $ 44 billion. Alternatively, distributed ledgers will lead to reductions in B2B Cross Border, remittance payments and title insurance. The reasoning for these reductions can be associated with the concept that the digitization of finance is typically a revenue-contracting development. Despite this, it can be noted that capital markets received an increase in revenue from Distributed Ledgers due to the fact that in secularly shrinking markets we equate cost-savings with expansion.