According to Statista, “the Robo-advisory market is expected to reach $1.66 trillion in AUM at the end of 2022. Moreover, AUM is expected to grow at 14.19% yearly, reaching $3.22 trillion in 2027.”
I know you can find anything on the internet but I am pretty sure this is approx the right number.
Over a trillion.
To me, that’s a big enough number to say that robo-advisory and digital wealth is a real business. That it’s here to stay.
In the 7 years I have been building Bambu I get asked often “Do you think digital wealth is real?”.
Not everyone likes the word robo-advisory. I don’t. So let’s use digital wealth, just like digital banking.
So how is digital wealth stacking up? Rather than being qualitative let’s be quantitative with some numbers:
- 1.66 trillion in global Assets Under Management
- 140 billion AUM at Vanguard. The largest corporation with a robo-advisor
- 50 billion spent on WealthTech from just the top 25 wealth managers
- 1 million users at Betterment. The largest direct-to-consumer platform in the USA
- 63% of consumers in the USA are open to using a robo-advisor to manage their investments, with millennials being the most open (75%). October 3, 2022.
- 10 wealth tech podcasts :-). They are all fascinating.
- 1 Bambu
The other stat is that the trend of all of these numbers is increasing. I did look for negative trends but didn’t find any in terms of adoption, spending, and take-up. It’s clear digital wealth is here to stay. The numbers all point in the right direction. But also it is just common sense. No one wants manual banking.
No one wants manual wealth. Just like banking, wealth will all be digital.
What other numbers do you think are relevant?
Best,
Ned Phillips
Founder & CEO