Has robo-advice stalled on the Australian launchpad?
For a long time so-called “robo-advice” was being touted as the way of the future for Australian financial planning, but new data from Investment Trends shows that it has barely taken off.
The latest Investment Trends Robo-advice Report, released this week, has confirmed the adoption of robo-advice in Australia remains significantly behind established markets like the US.
How far behind? Well according to the Investment trends data, penetration in Australia is just 7% compared to 23% in the US.
Indeed, it seems that Australia might be traversing its own path where robo advice is concerned, with the growth of micro-saving and investing apps such as Raiz.
Investment Trends research director, Recep Peker said Raiz’s popularity highlighted the appeal of micro-savings functionality among Australian investors.
“For other robo-advice providers, brand awareness appears to be an issue, with less than 12% of Australian online investors saying they are aware of providers like Stockspot, Spaceship Voyager, Clover or Sixpark, respectively,” he said.
“Nonetheless, there is significant scope for growth with 38% of Australian online investors considering using robo-advice in the future. The recent launch of solutions like CommSec Pocket and Peker said.
Recommended for you
With regional and rural suburbs exhibiting high spare capacity to invest, Money Management speaks to three regional advisers on the opportunities beyond the major cities and the importance of a strong network.
Platform consolidation is expected to accelerate among financial advisers this year, as software company Finura pinpoints which two platforms are set to be the winners, thanks to this trend.
The software provider has made several appointments in its APAC wealth propositions team, with a focus on driving growth across digital advice, Xplan and strategic partnerships.
The platform has announced it plans to close its Xplore managed discretionary account service in 2026 which holds $2 billion in funds under administration.
