Investment robo-advisor revenues ‘set to soar’

Revenues generated by wealth management robo-advisory platforms will grow to $25 billion globally by 2022, up from $1.7 billion in 2017, according to new figures.

The latest report from Juniper Research estimated that total assets under management by robo-advisors will increase twelve-fold to reach $4.1 trillion four years’ time, up from an estimated $330 billion in the past 12 months.

The study found that the automation of wealth management could revolutionise the way individuals invest. It argued that robo-advisors will make investments that are “more compelling” to both high net worth and lower income individuals, with average fees predicted to be as low as 0.6 per cent of assets under management by 2022.

The report highlighted future disruption in the market from new players such as Moneybox and Nutmeg, but also pointed out that traditional wealth management players are adopting new technologies to evolve their business models and drive cost savings.

Juniper noted that robo-advisors are broadening the appeal of the wealth management market, with intuitive smartphone apps making the investment process far more convenient and attracting new customers such as those in the Millennial age group.

The study also predicted that robo-advisors will become increasingly more automated over time, as artificial intelligence and machine learning-based approaches develop.

Research author Nick Maynard said: “The technologies powering robo-advisors will mature to such an extent that they move from their current human supervised role to being utilised in a fully automated way. This will be aided by track records of performance that automated robo-advisor systems are establishing.”

    Share Story:

Recent Stories


New Business Frontiers
FStech’s Mark Evans discusses the future of financial services with Liu Jianning of Huawei, covering the limitations that current thinking can impose, how financial institutions can embrace technology to be both agile and resilient, and making space for the organisation to focus on the job of creating innovative business models and on delivering business value for their customers.

The Future of Intelligent Finance
FStech Group Editor Mark Evans sits down with Jason Cao, President of Global Financial Services Business Unit, Enterprise BG at Huawei ahead of its Intelligent Finance Summit which was held on 3rd and 4th of June in Shanghai. This Q&A delves into key trends in digital transformation of the financial services industry as well as a look at how data, robotic infrastructure, intelligent storage and innovative technologies are shaping the future for FSIs.

Cracking down on fraud
In this webinar a panel of expert speakers explored the ways in which high-volume PSPs and FinTechs are preventing fraud while providing a seamless customer experience.