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March 31, 2017

North American wealthy investors prefer blend of human and robo advisory services

Two-thirds of emerging wealthy and high-net-worth investors in North America favour hybrid financial advisory services over human-only or robo-only services, according to a research by Accenture.

By Verdict Staff

Two-thirds of emerging wealthy and high-net-worth investors in North America favour hybrid financial advisory services over human-only or robo-only services, according to a research by Accenture.

Nearly 38% of all investors said they would not take the advice of their financial adviser without first consulting another source. Similarly, 52% of investors said that they would not opt for automated advice without consulting another source. 

Also, 72% of the wealthiest investors with a net worth of over $10m and 56% of investors with a net worth between $1.5m and $10m opined that human advisers fail to offer sufficient value.

On the other hand, 54% of investors cited getting very good advice from robo-advisor and 51% cited trusting their robo-advisor completely and said that they would recommend it to family members or friends.

The study also found millennials to be far less trusting of human advisers compared to baby boomers, and almost three times as likely to cite that they would never take their adviser’s advice without first consulting another source.

About seven out of 10 millennials said they are open to the idea of using investment advice from non-financial companies such as Google, Facebook, and Amazon. 

The study further found that investors using hybrid advisory services were about 50% more likely than those using human-only or robo-only advisory services to say they proactively seek and receive assistance on financial planning.

Preferences over advice also differed among male and female investors, with female investors more likely than their male counterparts to use dedicated-adviser services more than any other type of service.

 Accenture managing director and head of global wealth management practice Kendra Thompson said:  “The ‘robo versus human advisor’ debate has lost relevance for investors and wealth and asset managers in North America.

“Our research clearly shows that investors want a combination of automated and human advisory services and that significant numbers of Millennials and Gen Xers have already turned to hybrid services.”

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