Investors want their human advisors and digital advice, too.
In a study released by Accenture Thursday, 68 percent of investors across all ages and wealth ranges express a desire to have a person to talk to for financial advice, but they also want the convenience of the digital world.
“The robo-versus-human advisor debate has lost relevance for investors and wealth and asset managers in North America,” says Kendra Thompson, managing director and head of Accenture’s global wealth management practice. “Our research clearly shows that investors want a combination of automated and human advisory services.”
The survey, "The New Face of Wealth Management," included 1,354 investors in the United States and Canada and is part of Accenture’s research on the needs of modern investors in the evolving landscape for financial advice. Accenture is a global financial and business consulting firm based in New York City.
Overall, survey respondents were more likely to be satisfied with hybrid financial advisory services than with human-only or robo-only services for ease of money management, digital tools, explanation of fees, customized services and low-cost products, according to the research.
Sixty-four percent of investors using hybrid advice say they proactively seek financial advice, compared with 44 percent who only use human advisors or only use robo-advice. Investors who use hybrid advisory services are also among the most likely to have discussed family needs with their advisors, including children’s financial needs, parents’ long-term financial needs and estate and tax planning.
Thirty-eight percent of investors say they would never take the advice of their financial advisor without first consulting another source, and 52 percent say the same of their robo-advisors.
The research tackled other issues as well, such as the needs of women investors.
The study shows that only 61 percent of female investors say they have a good understanding of their investments, compared with 75 percent of men. More women (62 percent) than men (54 percent) also say they prefer paying for services provided, rather than paying a flat fee or percentage of assets under management.
“Women present an extraordinary growth opportunity for wealth management firms, yet few firms have changed their advisory model to meet women’s needs,” says Thompson. “Many women prefer a different approach to wealth management than the one many firms have traditionally offered. Empowered women want advisors to understand their life pictures and financial journeys rather than just their investments.”