Are you looking to add Robo-Advisory to your arsenal of tools? Maybe for your business or personal use only, whatever it is – it’s always a good idea to know more about the most important Robo-Advisory statistics of 2024.
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On this page, you’ll learn about the following:
Best Robo-Advisory Statistics
☰ Use “CTRL+F” to quickly find statistics. There are total 68 Robo-Advisory Statistics on this page 🙂Robo-Advisory Market Statistics
- From 2019 to 2020 the growth rate of the robo advisor industry was a mere 19.3%, amounting to a total robo adviser market size in 2020 of $987 billion, a far cry from the $2.2 to $3.7 trillion market size predicted in 2016.14. [0]
- With that in mindStudies are predicting a rising growth rate compared to the previous year of 38.5% from 2020 2021, likely under the assumption that markets will emerge strongly from the pandemic.16. [0]
- From 2019 to 2020 the growth rate of the robo advisor industry was a mere 19.3%, amounting to a total robo adviser market size in 2020 of $987 billion, a far cry from the $2.2 to $3.7 trillion market size predicted in 2016. [0]
- With that in mind Studies are predicting a rising growth rate compared to the previous year of 38.5% from 2020 2021, likely under the assumption that markets will emerge strongly from the pandemic. [0]
- The global robo advisory market size was valued at $4.51 billion in 2019, and is projected to reach $41.07 billion by 2027, growing at a CAGR of 31.8% from 2020 to 2027. [1]
- The top 5 digital portfolio managers manage about $199 bn, which corresponds to a market share of 40%. [2]
- According to data gathered by InsideBitcoins, the United States, as the leading roboadvisors market globally, is set to reach over USD1 trillion value in 2020, growing by 40 per cent yearon. [3]
- Statistics show the US roboadvisors segment is set to reach USD1.06 trillion this year, or almost 75 per cent of the global robo. [3]
Robo-Advisory Software Statistics
- Yet, even as these technologies became widespread , both occupations kept growing Employment of bookkeepers grew 6.4 percent, and employment of tellers grew 11.6 percent, from 1997 to 2007. [4]
Robo-Advisory Latest Statistics
- Assets under management are expected to show an annual growth rate of 14.98% resulting in a projected total amount of US$3.13tn by 2026. [5]
- What’s moreThe robo report estimated that the figure would skyrocket to a mind boggling $16 trillion by 2025.9. [0]
- From 2018 to 2019, the industry only registered a growth rate of 59.3%, far away from the continuous 150% 200% analysts were estimating to see not even three years ago and once again lower than the previous year.12. [0]
- What’s more The robo report estimated that the figure would skyrocket to a mind boggling $16 trillion by 2025. [0]
- After that, though, the entire industry growth slowed down.74.5% growth in assets to a total of $519 billion from 2017 to 2018, a troubling development for an industry with such lofty projections. [0]
- From 2018 to 2019, the industry only registered a growth rate of 59.3%, far away from the continuous 150% 200% analysts were estimating to see not even three years ago and once again lower than the previous year. [0]
- After that, the growth rate is expected to be 21.4% for 20242024 and 17.7% for 2024 2024 for a total amount of AUM of $2.113 trillion, and $2.487 trillion, respectively. [0]
- US RoboAdvisor Account Holders, 2018 2025 . [6]
- Roboadvisors are forecast to become $1.4trn worth industry this year, jumping by 47% yearon. [7]
- They usually charge low fees, around 0.25 per cent a year, and require small opening balances, from as little as $10. [7]
- Traditional wealth advisors charge investors around 3 per cent a year, take a further percentage off profitable investments, and require a deposit of hundreds of dollars. [7]
- Despite such a significant rise over the last couple of years, the industry is still expected to grow at a compound annual growth rate of 21% by 2024. [7]
- This number has jumped five times to 70.5 million this year, demonstrating 54% yearon. [7]
- This is according to analytics firm Hearts & Wallets’ survey of 5,641 households, as well as data from the US Census Bureau, Federal Reserve. [8]
- And around 13% of Charles Schwab’s investors use a robo advisory platform, including its proprietary Schwab Intelligent Portfolios $43 billion. [8]
- According to Corporate Vision Magazine, huge surge has been registered in sign ups for robo advisory in the first quarter of 2020 with 3.1% increasing rate. [1]
- For instance, Vanguard reported a 14% growth in assets and 35% increase in customer numbers, whereas PensionBee witnessed an increase of 14% for robo advisory. [1]
- The Robo Advisory Market is estimated to grow at a CAGR of 31.8% from 2020 to 2027. [1]
- According to Statista, assets under management in the Robo Advisors segment are projected to reach $1,4m in 2021. [2]
- The list of best robo advisors in April 2021 according to Nerdwallet Betterment, Wealthfront, Vanguard Digital Advisor, Stash, Ellevest, SoFi, Ally Invest Managed Portfolios, SigFig, Axos Invest. [2]
- Statista reports that in Q1 2020, Betterment’s SRI themed portfolio equalled 14.9 per cent , Wealthsimple’s — 11.3. [2]
- That’s a 30% increase from 2019. [9]
- The Path and Self Driving Money tool in particular helps users evaluate the tradeoffs of several goals and automatically fund those goals with extra cash for a low cost of 0.25%. [10]
- Furthermore, they require small opening balances, from as little as USD10 and charge low fees, around 0.25 per cent a year. [3]
- Employment of financial managers is projected to grow 18.7 percent. [4]
- change,2016–2620162026, projectedNumberPercentNumber employedPercent Percentage in North American Industry Classification System. [4]
- Changing landscape of retirementEmployment of personal financial advisors is projected to grow 14.9 percent from 2016 to 2026. [4]
- According to the Urban Institute, defined benefit pensions “covered 30 percent of adults born in the 1940s and 1950s. [4]
- They will cover only 11 percent of adults born in the 1980s. [4]
- Employment of bookkeepers is projected to decline 1.5 percent from 2016 to 2026, representing a loss of 25,200 jobs. [4]
- Data entry that used to be performed manually by bookkeepers is now logged automatically across all the relevant devices and books.5Employment of tellers is projected to decrease 8.3 percent from 2016 to 2026, amounting to a loss of 41,800 jobs. [4]
- Second, because a trip to a bank branch is no longer required for these transactions, banks are reducing their numbers There was a 5.3 percent decrease in the number of bank branches from 2012 to 2017, according to the Federal Deposit Insurance Corporation. [4]
- According to a study by the Spectrem Group, the average age of investors who use roboadvisors is 48, compared with an average age of 62 for investors who do not use robo. [4]
- Employment of personal financial advisors is projected to grow 14.9 percent from 2016 to 2026. [4]
- Data entry that used to be performed manually by bookkeepers is now logged automatically across all the relevant devices and books.5 Employment of tellers is projected to decrease 8.3 percent from 2016 to 2026, amounting to a loss of 41,800 jobs. [4]
- Given the option, 84% would rather work with a human financial advisor to invest their money compared with 16% who would prefer to use a robo advisor, according to a new NerdWallet survey. [11]
- More than 2 in 5 investors (44%) use a human financial advisor to manage their investment accounts, while less than 1 in 5 investors (15%). [11]
- Close to twothirds of Americans (64%). [11]
- About two thirds of U.S. adults (65%) have investment accounts, such as 401s (39%), IRAs (33%) and broerage accounts (28%). [11]
- These Americans have $368,619 invested, on average, but close to half of investors (47%). [11]
- For example, 2 in 5 Americans with an annual household income of less than $50,000 (40%) have investment accounts, compared with almost 9 in 10 Americans with an annual household income of $100,000 or more (87%). [11]
- Men are also more likely than women to have investment accounts (72% vs. 58%). [11]
- More than 2 in 5 Americans who have investment accounts (44%) use a human financial advisor to manage these accounts, while less than 1 in 5 (15%). [11]
- More than half of investors with an annual household income of $100,000 or more (51%) use a human advisor to manage their investments compared with a third of those with an annual household income of less than $50,000 (33%). [11]
- The majority of Americans who don’t use a human advisor to manage their investments (65%). [11]
- But of those who don’t use a human financial advisor, 35% don’t think they can afford to have a human advisor to manage all of their investments and another 25% aren’t at all sure. [11]
- Nearly twothirds of Americans (64%). [11]
- Around two thirds of Americans who use a human financial advisor to manage their investments (66%). [11]
- Close to 2 in 5 Americans (39%). [11]
- Of those who use a roboadvisor to manage their investment accounts, 60% say they use them because they’re easy to use, 56% say they’re cost. [11]
- 44% say it’s because there’s a low barrier to entry, according to the survey. [11]
- Nearly 3 in 4 Americans (74%). [11]
- But widening the pool to include those who say they were very confident or somewhat confident, the numbers are 96% for those who use a human advisor and 94% among those who use a robo advisor, the survey found. [11]
- Close to half of those who don’t use a robo advisor to manage their investments (45%). [11]
- Thus, different forecasts predict that RAs will globally manage between $0.8 and $8.1 trillion by 2020, which is 1–10% of the total global assets under management. [12]
- For example, according to BI Intelligence research, 49% of highnet worth individuals worldwide would consider letting an RA to manage at least some portion of their wealth. [12]
- The dataset included RAs from 28 countries, with 30% of the companies located in USA, 20% in Germany, 14% in UK, 9% in Switzerland, and the remaining 27% in other countries. [12]
- The RAs in the dataset were founded between 1997 and 2017, with the average founding year being 2014 (the most frequent years are 2016—48%, 2015—16%, 2017—15%, and 2014—14%). [12]
- Fig. 2 Relation between the methods’ occurrences (%). [12]
I know you want to use Robo-Advisory Software, thus we made this list of best Robo-Advisory Software. We also wrote about how to learn Robo-Advisory Software and how to install Robo-Advisory Software. Recently we wrote how to uninstall Robo-Advisory Software for newbie users. Don’t forgot to check latest Robo-Advisory statistics of 2024.
Reference
- digitalintheround – https://digitalintheround.com/robo-advisor-statistics/.
- alliedmarketresearch – https://www.alliedmarketresearch.com/robo-advisory-market.
- justcoded – https://justcoded.com/blog/rise-of-robo-advisors-market-size-performance-and-future-trends/.
- wealthadviser – https://www.wealthadviser.co/2020/05/18/285696/us-robo-advisory-industry-hit-usd1tn-value-year.
- bls – https://www.bls.gov/opub/btn/volume-7/in-the-money-occupational-projections-for-the-financial-industry.htm.
- statista – https://www.statista.com/outlook/dmo/fintech/digital-investment/robo-advisors/worldwide?currency=usd.
- emarketer – https://www.emarketer.com/topics/industry/robo-advisors.
- tradersmagazine – https://www.tradersmagazine.com/news/robo-advisors-to-become-1-4t-industry-this-year/.
- businessinsider – https://www.businessinsider.com/eight-percent-us-households-invest-in-robo-advisors-2020-9.
- cnbc – https://www.cnbc.com/2021/04/12/why-robo-advisors-may-never-replace-human-financial-advisors.html.
- investopedia – https://www.investopedia.com/investopedia-2024-best-robo-advisors-awards-5220680.
- nerdwallet – https://www.nerdwallet.com/article/investing/robo-advisor-survey.
- springer – https://link.springer.com/article/10.1057/s41260-018-0092-9.
How Useful is Robo Advisory
One of the main benefits of robo-advisors is their accessibility. They offer low-cost investment options and require minimal effort from the user. This makes them appealing to people who may not have the time or knowledge to actively manage their investments. With just a few clicks, users can set up a portfolio and have it automatically rebalanced based on their risk tolerance and investment goals.
Another advantage of robo-advisors is their ability to remove emotions from investment decisions. Humans are prone to panic and make irrational decisions during market downturns, which can lead to poor investment outcomes. Robo-advisors, on the other hand, rely on algorithms that are designed to follow a set of rules without being influenced by emotions or market fluctuations. This can help prevent rash decisions and keep a portfolio on track for long-term gains.
Additionally, robo-advisors typically offer a range of investment options tailored to different risk profiles and goals. Users can choose from a variety of ETFs and mutual funds to build a diversified portfolio that fits their needs. This flexibility allows investors to customize their portfolios and adjust their risk exposure as needed.
However, there are limitations to utilizing a robo-advisor. One of the main drawbacks is the lack of human interaction. While robo-advisors can provide automated support and investment advice, they cannot offer personalized financial guidance or counseling. Some investors may prefer the clarity and reassurance of speaking with a human advisor who can provide individualized recommendations based on their unique situation.
Additionally, robo-advisors may not be well-equipped to handle complex financial situations or changes in personal circumstances. They may lack the ability to account for factors that go beyond the scope of their algorithms, such as tax implications, estate planning, or specific investment preferences.
Furthermore, there is always a risk of technical errors or glitches when relying on automated systems. While robo-advisors are designed to be efficient and accurate, they are not immune to malfunctions or inaccuracies that could impact investment decisions.
In conclusion, robo-advisors can be a useful tool for individuals looking for a straightforward and low-cost way to manage their investments. They offer accessibility, automated rebalancing, and the ability to remove emotional biases from decision-making. However, they have limitations in terms of human interaction, customization, and handling complex financial situations. Ultimately, the usefulness of robo-advisors will depend on individual preferences and needs, and investors should consider their options carefully before deciding which approach is right for them.
In Conclusion
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