Robo advice grows by 133% over 12 months
As Nutmeg announces its first £1 billion of assets under management, the total UK robo advice market remains small today, forming just 0.9% of all non-advised assets managed online.
- Total non-advised AUA was £192.4bn as at Q3 17
- Robo advisers have £1.7bn AUA
- Average account sizes for robo providers are £20,500 compared to an industry average of £52,500
Boring Money CEO and Founder Holly Mackay comments, “2017 was the year of the disrupter. I salute Nutmeg for their achievements and their first mover advantage bodes well. But I think that 2018 will be the year we see the bigger brands start to compete in this space. With average customer acquisition costs of £250, revenues of less than 1% and average account sizes just north of £20,000, building a robo adviser from scratch is not an easy game to win. This has to be a long-term volume play. I’m sure we have more M&A activity ahead and of course the banks are set to launch new propositions as we move into 2018”.
Boring Money collect data from 18 online investment providers and estimate assets for a further 7. This data is correct as at Sep 2017.
The research covers traditional platforms, life companies, banks, asset manager and robo advisers.