Most Consumers Use Mix of Technology, Live Advice: Report

Investors, especially affluent ones, are comfortable using digital tools in their decision making process, according to a white paper from Hearts & Wallets. Nearly two-thirds of investors with between $500,000 and $2 million use digital tools, and over half of those with between $100,000 and $500,000 do so.

“Increasing use of technology has paralleled investors’ association with self-determination in their investment decision making,” as opposed to relying on others, according to Todd Hiller, vice president of Hearts & Wallets and author of the report.

That coincides with the industry’s desire to counteract investors’ lingering distrust of financial services. In fact, Hiller wrote that investors’ identification as self-directed is “not the same as no involvement of a paid financial professional. […] Most consumers use technology and live advice together, in different combinations of frequency and purpose, depending on the segment of investor.”

Firms that integrate digital advice tools into their service offerings should state their value propositions clearly, with more detail easily accessible. The paper noted that younger investors are also “connoisseurs of design.”

Robo tools are also helping consumers beyond simply planning and investing. Research from Hearts & Wallets found that in addition to those traditional needs, investors also want tools that can aggregate and monitor their assets and motivate them to take action.

Among “accumulator” investors, 62% identified motivation as one of their top two financial needs, followed by 60% who said planning and 53% who said investing. Wealthier investors showed high levels of interest in motivation and aggregation support as well. Planning and investing were most frequently identified as the top two goals of investors in the $500,000 to $2 million segment, but 61% identified aggregation and monitoring as a top-two goal, and 59% identified motivation.