According to Juniper Research, current robo-advisor revenues were estimated at $1.7 billion in 2017. By 2022, the firm is also estimating that those revenues will jump to over $25 billion. Current AUM at robos was $330 billion as of 2017. That, too, is expected to dramatically increase to over $4.1 trillion within 5 years according to the report. Robos are the bain of wealth managers, and typically command much lower fees, which are estimated to be around o.6% on average by 2022. We've talked about robos a lot in the past, and all we can do is continue to encourage wealth managers to amp up their technology suite so they can compete with this new, ever-expanding category.
(Cindy Taylor/Publisher)
BASINGSTOKE, England--(BUSINESS WIRE)--A new study from Juniper Research has found that roboadvisor platform revenues will reach $25 billion by 2022, up from an estimated $1.7 billion in 2017, as the automation of wealth management revolutionises the way individuals invest.
The new research, Fintech Futures: Market Disruption, Leading Innovators & Emerging Opportunities 2017-2022, found that roboadvisors will make investments more compelling to HNWIs (High Net Worth Individuals) and lower income individuals, with average fees estimated as low as 0.6% of assets under management in 2022, with disruption from new players such as
Moneybox
and
Nutmeg
.
Read more in Juniper’s complimentary whitepaper, The Future of Fintech – Disrupt, Collaborate or Die.