U.S. Digital Investment Management Market Monitor, Q2 2020 - The Latest Aite Group Research Finds The U.S. D2C Digital Investment Management Space Grew 16% In 2019, Reaching US$298 Billion In AUM

With digital investment management startups venturing into banking, large financial institutions entering the marketplace, and many solutions undergoing overhauls in 2019, the maturation of the direct-to-consumer digital investment management space is evident. Though still small as a relative portion of the overall U.S. wealth management industry, the digital investment management space is now seen as an integral component for many traditional firms, increasingly essential as commission revenue continues to decline and COVID-19-related brick-and-mortar building closures usher in a new era of digital engagement. U.S. Digital Investment Management Market Monitor, Q2 2020 is the third in a biannual Aite Group report series on the digital investment space, and offers market-sizing estimates and forecasts.

“The pace of strategic developments in the digital investment management space has slowed in early 2020 compared to late 2019,” states Eric Sandrib, research associate at Aite Group. “While the level of activity in 2019 would be hard to match given stable times, the COVID-19 pandemic has certainly stressed firms’ operations and spending capabilities, impacting their plans,” he explains.

By contextualizing the latest events in the market, tracking new entrants and exits, and speaking to multiple digital investment firms, this report aims to understand where the market is currently and where it is heading. It is based on Securities and Exchange Commission Form ADV data, direct reports from firms, interviews, and media reports.