In the asset management and financial advisory market, there are several Fintechs providing services without charging commission. Their revenue model is based either on acquiring customer data to offer other products, or on the margin they get on transacting with the exchanges.

Another type of service emerging is robo-advisory, where algorithms provide an active portfolio management that is executed on behalf of the clients. With an automated process, money management providers dis-intermediate human financial advisors, reducing costs and potentially reducing biases from human interactions.

In a little over ten years, US-based robo-advisor Betterment has reached $30bn in assets under management. It provides active portfolio management adjusted to the goals of specific individuals using low-cost ETFs that mirror established indexes to help build diversified investment portfolios with annual management fees as low as 0.25 per cent. (An exchange-traded fund or ETF is typically a security that tracks an index or stock but can be bought or sold like a stock.)