SEARCH
US robo surge has lessons for Australia
US robo surge has lessons for Australia
Growth in the US robo-adviser market has surged over the past three years, revealing the types of clients digital advice may suit as the market matures in Australia.
New research from cryptocurrency information hub Inside Bitcoins revealed that the value of the US robo-advice market had increased almost fourfold from 2017 to 2019, from $191.6 billion to $757.1 billion.
The firm said the market was expected to surpass $1 trillion assets under management this year, and reach $1.5 trillion by 2023.
The firm defined robo-advisers as algorithm-driven systems that were able to set up a portfolio for an investor with “little to no human supervision”, and said such platforms were a good entry point for consumers with small amounts to invest.
“These investing platforms offer easy account set-up, portfolio management, and customer services,” the firm said.
“Furthermore, they require small opening balances, from as little as $10 and charge low fees, around 0.25 percent a year.”
While robo advice systems typically appealed to lower balance, cost-conscious clients, the data showed that over time the assets under management per user had swelled, from almost US$39,000 in 2017 to just over US$99,000 in 2020.
“By the end of 2021, this amount is expected to touch nearly [US]$103,000,” Inside Bitcoins said.
While the growth in robo advice had been led by US-based platforms such as Wealthfront and Betterment, global take-up had also been strong with 70.5 million robo advice users worldwide as of this year.
This represented a fivefold increase in user numbers over the past three years, and user numbers were expected to double by 2023, the firm said.
About the author
Subscribe to our Newsletter
We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians
Your email address will be shared with nestegg and subject to our Privacy Policy
latest articles
OUR PLATFORMS AND BRANDS
- Accountants Daily
- Accounting Times
- Adviser Innovation
- Australian Aviation
- Cyber Daily
- Defence Connect
- Fintech Business
- HR Leader
- Independent Financial Adviser
- Investment Center
- Investor Daily
- Lawyers Weekly
- Money Management
- Mortgage Business
- Nestegg
- Property Buzz
- Real Estate Business
- Smart Property Investment
- SMSF Adviser
- Space Connect
- Super Review
- The Adviser
- Wellness Daily
- Which Investment Property
- World of Aviation
EVENTS AND SUMMITS
- Accountants Daily 30 Under 30 Awards
- Adviser Innovation Summit
- Australian Accounting Awards
- Australian Aviation Awards
- Australian Broking Awards
- Australian Defence Industry Awards
- Australian Law Awards
- Australian Space Awards
- Australian Space Summit
- Better Business Summit & Awards
- Corporate Counsel Summit & Awards
- Cyber Security Summit & Awards
- Defence Connect Budget Lunch
- Defence Connect DSR Summit
- Fund Manager of the Year Awards
- ifa Excellence Awards
- ifa Future Forum
- Investor Daily ESG Summit
- Lawyers Weekly 30 Under 30 Awards
- Lawyers Weekly Women in Law Forum
- Mortgage Business Awards
- New Broker Academy
- Partner of the Year Awards
- REB Awards
- Reinnovate
- SME Broker Bootcamp
- SMSF Adviser Technical Day
- Super Fund of the Year Awards
- Women in Finance Awards
- Women in Law Awards
- Accountants Daily Podcast Network
- The Adviser Podcast Network
- Australian Aviation Podcast Network
- Defence Connect Podcast Network
- HR Leader Podcast Network
- The ifa Show
- The Lawyers Weekly Show
- Mortgage Business Podcast Network
- REB Podcast Network
- Relative Return
- The Smart Property Investment Show
- Space Connect Podcast
PODCASTS
LEARNING AND EDUCATION
MOMENTUM MARKETS NETWORK
LINKS
STAY CONNECTED
Subscribe to the Adviser Innovation eNewsletter.
