Robo-advisor statistics in Australia 2022

1 in 5 people from generation Z plan to use robo-advice.

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Susannah Binsted

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David Gregory

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Key takeaways

  • Only 1% of Australians use robo-advisors now, but 10% (2 million) plan to use one.
  • Future growth is led by Generation Z and women who increasingly plan to use robo-advisors.
  • Robo-advisors typically charge around 0.3% p.a. for management, with total fees about 0.4%-0.5%.

Just 1% of Australian adults currently use a robo-advisor, according to Finder’s Consumer Sentiment Tracker (September 2022). However, 10% of Australians plan to use one in the future meaning nearly 2 million Aussies could soon be getting robo-advice.

Which demographics are driving the trend and how much are people investing? Read on to find out.

Quick summary

  • 1% of Australian adults, the equivalent of 255,000 people, currently use a robo-advisor. However, an extra 10% – nearly 2 million people – plan to use one.
  • Men are currently more likely to use a robo-advisor, but they’re set to become more popular with women.
  • Assets under management (AUM) in the Australian robo-advice segment are projected to reach $13.2 billion in 2023 and nearly $38 billion by 2027.
  • Average AUM per user in Australia is $15.8k and is expected to increase by nearly 75% to $27.6k by 2027.

Robo-advisor usage in Australia

  • 1% of Australian adults, the equivalent of 255,000 people, currently use a robo-advisor.
  • However, an extra 10% – nearly 2 million people – say they plan to use one.
  • 4% say they’ve used a robo-advisor in the past but don’t currently use one or have any plans to.
  • 85% of Australians have never used a robo-advisor and have no plans to.

Do you currently use a robo-advisor?

Do you currently use a robo-advisor?
ResponseCount
No85
No, but I plan to10
I've used one in the past4
Yes1
Source: Finder's September CST

Robo-advisor usage by demographic

  • Men are more likely than women to use a robo-advisor (2% vs 1%) and are also more likely to have used one in the past (5% vs 3%).
  • Women are nearly twice as likely to have plans to use a robo-advisor (12% vs 7%), meaning robo-advisor use among women could soon be 13% compared to 9% for men.
  • Generation Y are currently the most likely to use a robo-advisor at 2%, compared to 1% each for generation Z and generation X and 0% of baby boomers.
  • Adoption among generation Z is expected to hit 20%, much higher than the 14% among generation Y and more than double the expected adoption among generation X (8%) and baby boomers (2%).

Robo-advisor adoption set to grow more quickly among women

Robo-advisor adoption set to grow more quickly among women
GenderCurrently using a robo-advisorPlan to use one in the future
Male27
Female112
Source: Finder's September CST

One in five Gen Zers are expected to use a robo-advisor

One in five Gen Zers are expected to use a robo-advisor
GenerationCurrently using a robo advisorPlan to use one in the future
Baby boomers02
Gen X17
Gen Y212
Gen Z119
Source: Finder's September CST
  • Assets under management (AUM) in the robo-advisors segment in Australia are projected to reach $19 billion in 2023 and nearly $38 billion by 2027.
  • Average AUM per user in Australia is $15.8k and is expected to hit $20k in 2023 and $27.6 by 2027.
  • Global robo-advised assets are forecast to increase from US$2.6 trillion to US$6.2 trillion by 2027.

Assets under management by robo-advisors in Australia

In billion AUD

Assets under management by robo-advisors in Australia
YearTotal AUD
20170.7003
20181.341
20192.4734
20204.1422
20218.3887
202213.2163
202319.0869
202424.1827
202529.0401
202633.4952
202737.9205
Source: Statista, Aug 2022.

The average Australian robo-advisor user is expected to have over $27k in funds under management by 2027

Average funds under management by year.

The average Australian robo-advisor user is expected to have over $27k in funds under management by 2027
YearAverage funds under management
20175587.5
20185885.5
20194648.8
20207315.9
202111651.8
202215779.1
202320070.3
202422707.6
202524704.2
202626179.3
202727654.4
Source: Statista, Aug 2022

About Australian robo-advisors

  • Australian robo-advisors offer an average of 7 investment solutions.
  • 70% of the available options are diversified, meaning they mix their investments across exposure to shares, property or bonds.
  • Robo-advisors charge an average fee of 0.3% p.a. for an investment of $10,000. Including other investment fees, this means total fees are likely to be around 0.4%-0.5% p.a.
  • The ETF brands most used by Aussie robo-advisors are Betashares, iShares and Vanguard.
To make sure you get accurate and helpful information, this guide has been edited by David Gregory as part of our fact-checking process.
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Susannah Binsted is the head of the Finder Awards program. Previously she was the head of public relations for the international division at Finder. Susannah has a Bachelor of Communication and a Bachelor of International Studies from the University of Technology Sydney. See full bio

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