Global robo-advice industry to be worth US$1.4t
The global robo-adviser industry is expected to be worth US$1.4 trillion (AU$ 2.04 trillion) this year, according to research from UK company LearnBonds.
The industry has jumped 47% on a yearly basis, with assets managed by robo-advisers expected to hit $2.5 trillion by 2023, with 147 million users.
In 2017 the assets under management (AUM) of robo-advisers were US$240 billion, which quadrupled over and jumped to US$980.5 billion.
The US currently held the largest part of the robo-adviser market (75%), which was expected to hit US$1 trillion this year.
The second biggest market was China which held US$700 billion, followed by the UK (US$24 billion), Germany (US$13 billion) and Canada (US$8 billion).
Typical robo-advisers collect financial information from clients through an online survey and used the data to offer advice to automatically invest.
They often required small opening balances and charge low fees, often around 0.25%.
AUTHOR
Chris Dastoor
Recommended for you
Wealth managers who lack expertise in alternatives could find themselves at risk of losing clients, according to iCapital, with a shift towards evergreen funds already at play in their asset allocations.
The development of semi-liquid private equity funds is providing an easier way for wealth managers to access the asset class, according to a panel, while firms are substantially improving their valuation processes.
Generation Development Group has appointed former Evidentia chief executive Peter Smith as an executive director.
Equity Trustees has paid three infringement notices issued by ASIC in which the corporate regulator alleged it made misleading statement about investments in a sustainable bond fund.
