Advisors would do well to increase their firms’ transparency on fees and security; build the image of the brand; continue advanced education, and promote those educational credentials to clients in order to build trust. The two significant components of trust are credibility and professionalism, the institute said.
Globally, investors were evenly split on whether they prefer human or artificial intelligence, but for participants in the United States, 69% said they want a human being, while only 31% said they would rely strictly on technology.
“This is not an either or situation [as] investors rely on a blend of both human intelligence and artificial intelligence,” Fender said.
“This time of heightened market volatility sets up a very different path for those who will succeed in meeting their investment goals and those who will not. Fear and panic can obscure sound investment decision-making,” Margaret Franklin, president, and CEO of the CFA Institute, said in a statement. “In this climate, the need for trust in institutions and in the advisors who act on behalf of investors, as well as the financial system in which they operate, becomes starkly apparent.”
The survey can be found at trust.cfainstitute.org.