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?
Response
Count
No
85
No, but I plan to
10
I've used one in the past
4
Yes
1
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
Gender
Currently using a robo-advisor
Plan to use one in the future
Male
2
7
Female
1
12
One in five Gen Zers are expected to use a robo-advisor
One in five Gen Zers are expected to use a robo-advisor
Generation
Currently using a robo advisor
Plan to use one in the future
Baby boomers
0
2
Gen X
1
7
Gen Y
2
12
Gen Z
1
19
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
Year
Total AUD
2017
0.7003
2018
1.341
2019
2.4734
2020
4.1422
2021
8.3887
2022
13.2163
2023
19.0869
2024
24.1827
2025
29.0401
2026
33.4952
2027
37.9205
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
Year
Average funds under management
2017
5587.5
2018
5885.5
2019
4648.8
2020
7315.9
2021
11651.8
2022
15779.1
2023
20070.3
2024
22707.6
2025
24704.2
2026
26179.3
2027
27654.4
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.
Sources
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To make sure you get accurate and helpful information, this guide has been edited by
David Gregory
as part of our
fact-checking process.
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.
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