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Australia trails world on robo-advice

Australia trails world on robo-advice

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By Sarah Kendell ·
June 22 2020

Australia trails world on robo-advice

Australia lags behind other countries on robo-advice but women investors are driving increased uptake around the world, according to the latest research from Investment Trends.

Australia trails world on robo-advice
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Australia is still trailing established markets like the US (7 per cent of investors use robo-advice compared to 23 per cent in the US) but Raiz, a micro-saving and investing app, has gained ‘significant traction’ with over 200,000 active customers.

“Raiz’s popularity highlights the appeal of micro-savings functionality among Australian investors,” said Recep Peker, research director at Investment Trends. “For other robo-advice providers, brand awareness appears to be an issue, with less than 12% of Australian online investors saying they are aware of providers like Stockspot, Spaceship Voyager, Clover or Sixpark, respectively.”

And while 38 per cent of Australian online investors are considering using robo-advice in the future, providers will still need to demonstrate cost and time savings benefits in order to stand out.

But one area where robo-advice providers are gaining significant traction is among women, whose interest in the solution is higher. 29 per cent of women online investors currently use robo-advice compared to 22 per cent of male investors in the US, while in Australia, women are more likely to consider using robo-advice in the future than men (40 per cent to 36 per cent).

“Providers that intend to satisfy the strong latent demand for robo-advice among women investors will do well to understand the distinct needs and priorities of these investors,” Mr Peker said. “When selecting a robo-advice provider, women online investors are more likely than men to prioritise the user interface (55% vs 49%) and education initiatives (40% vs 34%) but are less like to focus on fees (41% vs 53%).”

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