US headquartered Betterment LLC has surpassed $5bn in assets under management –the first automated advisory service to do so.

Betterment has no minimum investment requirement, and the average account balance is $29,000. The largest amount invested by an individual is $10m. The firm touts 175,000 customers.

Betterment had recently caused controversy when it halted trading on June 24 between 9.00am and noon, in response to the UK voting to leave the European Union. The firm had not alerted its customers of the action beforehand.

According to a KPMG report, roboadvisers are set to manage $2.2trn by 2020, and are seen as the most significant disrupters to the wealth management industry – however, this figure is only likely to account for 20% of the total value of the wealth management industry which is set to grow to $102trn.

According to Bloomberg, Betterment’s founder and CEO, Jon Stein, has said that going public is the future he sees for the firm, but that Betterment will first have to add more new products, such as its relatively new 401(k) offering that now has approximately 150 companies signed on.

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