Roboadvisor Platform Revenues Will Reach $25 Billion by 2022

Roboadvisor Platform Revenues Will Reach $25 Billion by 2022

Foto: Depositphotos

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 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.

Juniper found that roboadvisors are broadening the appeal of the wealth management market, with their delivery method via intuitive smartphone apps making the investment process far more convenient, offering a compelling reason for millennials to invest. The study found that this will drive total assets under management by roboadvisors upwards twelvefold, to $4.1 trillion in 2022, from an estimated $330 billion in 2017.

Juniper predicted that roboadvisors will become increasingly more automated over time, as AI & machine learning based approaches mature. Research author Nick Maynard added: "The technologies powering roboadvisors 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 automated roboadvisor systems are establishing."

While new entrants are disrupting the market, traditional wealth management players are also adopting new technologies to evolve their business models. Providers such as BlackRock and Aberdeen Asset Management have invested in roboadvisor start-ups, such as Scalable Capital, FutureAdvisor and Parmenion. The study found that the appeal of these technologies is clear to established players, as automated systems, even in a limited role, will enable significant cost reductions and therefore increase their overall quality of service and profitability.

More from category

Enterprise WLAN Market Sees Moderate Growth in 1Q18

Enterprise WLAN Market Sees Moderate Growth in 1Q18

19 Jun 2018 comment

The combined consumer and enterprise wireless local area network (WLAN) market segments decreased 1.3% year over year in the first quarter of 2018 (1Q18) with worldwide revenues of $2.24 billion, according to IDC.

Global Digital Commerce Spend Will Rise 60 Percent by 2022

Global Digital Commerce Spend Will Rise 60 Percent by 2022

19 Jun 2018 comment

A new study from Juniper Research forecasts that consumer spend on Digital Commerce will reach $14.7 trillion by 2022, up by 60% on last year’s figure of $9.2 trillion.

EMEA Smartphone Markets Hit Record Value Despite Global Slowdown

EMEA Smartphone Markets Hit Record Value Despite Global Slowdown

18 Jun 2018 comment

The EMEA region's smartphone market showed some stability in the first quarter of 2018 in unit terms, while its value grew to exceed its previous first quarter peak result in 1Q15, according to IDC.