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”.

Notes:

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.