Robo-advisers continue swift asset growth

Robo-advisers continue swift asset growth
LearnBonds.com expects assets managed on digital platforms to reach $1.4 trillion globally in 2020
FEB 03, 2020

Despite increasing competition from traditional financial institutions, data gathered by LearnBonds.com suggest digital advice technologies will see significant asset growth in coming years.  

The researcher expects assets managed by robo-advisers to grow 47% year-over-year to reach $1.4 trillion globally in 2020. By 2023, LearnBonds expects robo-adviser assets under management to reach $2.5 trillion.

According to the robo-adviser market outlook from Statista, AUM at robo-advisers totaled $240 billion in 2017. The market quadrupled over the last 2 years to reach $980.5 billion.

The United States, home to digital advice startups like Betterment, Wealthfront and Personal Capital, continues to lead the automated investing marketplace. Three-quarters of robo-adviser AUM is U.S.-based, and LearnBonds expects the market to reach $1 trillion this year. Second-ranked China is around $700 billion behind.

The numbers are in line with similar research from Aite Group, which found assets at U.S.-based digital advisers grew 10% over the first three quarters of 2019 and will reach $1.26 trillion in 2023.

Leading the growth are new digital platforms from traditional financial services firms. Vanguard Personal Advisor services remains the biggest robo in terms of AUM, while products from discount brokerages account for 35% of the market.

Banks see digital advice as a way to encourage customers to invest cash in checking and savings accounts. Citi became the latest bank to enter the market last week with the introduction of its Citi Wealth Builder product.

Latest News

SEC Says Game Service Roblox Part of ‘Active Investigation’
SEC Says Game Service Roblox Part of ‘Active Investigation’

Short sellers previously said the company was under investigation, though Roblox denied allegations.

Musk’s DOGE descends on CFPB with intention to shut it down
Musk’s DOGE descends on CFPB with intention to shut it down

The Consumer Financial Protection Bureau is in the crosshairs of the Republican group that is widely attempting to dismantle government agencies.

Advisor fighting Finra banishment loses $17.7 million dispute with old firm
Advisor fighting Finra banishment loses $17.7 million dispute with old firm

National Securities Corp. sued the advisor in 2020, alleging breach of contract and unjust enrichment.

Job numbers, inflation leaving room for Fed to hold rates
Job numbers, inflation leaving room for Fed to hold rates

Recent data support a measured pace by the Federal Reserve for the year ahead.

Private assets remain hot despite surging stock market
Private assets remain hot despite surging stock market

Financial advisors are still adding alternatives despite the surge in publicly traded stock prices

SPONSORED Taylor Matthews on what's behind Farther's rapid growth

From 'no clients' to reshaping wealth management, Farther blends tech and trust to deliver family-office experience at scale.

SPONSORED Why wealth advisors should care about the future of federal tax policy

Blue Vault features expert strategies to harness for maximum client advantage.