Discussions about robo-advisors, automated digital financial advice providers, are proliferate in the financial industry—but the investing public remains largely unaware of the new tools, a new survey says.
Most investors haven’t heard of robo-advisors, and few are using them, according to the Wells Fargo/Gallup Investors and Retirement Optimisum Index Survey.
Just 45 percent of the survey’s respondents claim to be familiar with robo-advisors, and five percent report already having used one.
Yet 60 percent of the respondents said they would like their advisors to offer digital investment tools like robo-advisors. While 68 percent of respondents between the ages of 18 and 49 said that they would like to have a robo-advisor option, 55 percent of those 50 and older agreed that their advisory firm should offer automated digital advice.
Despite the financial industry’s migration to the web, only 46 percent of the survey’s respondents say they go online to make changes to their investments. Similarly, 46 percent reported using the web to calculate their retirement needs, while 45 percent go online to rebalance their investments.
Just 24 percent of the survey’s respondents seek investment advice through the Internet or online tools.
At the same time, around 60 percent of investors report doing basic financial tasks, like reviewing account fees and investment statements, online.
While most investors age 50 and older, 59 percent, rely on telephone calls or visits to a branch office to acces their primary investment firm, 69 percent of respondets under age 60 saidthey primarily rely on websites or mobile applications.
Half of the respondents said that interacting with their primary financial services provider through a website or mobile app is important to them.
Gallup surveyed 1,019 U.S. investors with at least $10,000 in savings and investments between May 13 and 22.