Podcast Center
Video Center
Webcasts
Resource Center
Events
December 09, 2016 at 08:47 AM
More investors are still using a traditional advisor compared to a robo-advisor, but a new report finds a growing opportunity for hybrid advice.
Nearly 23% of Americans in a survey are using a traditional financial planner or advisor, compared with 7% who are currently using an automated investing platform, according to a new report from the Financial Planning Association and Investopedia.
The survey, which was conducted among 2,002 users of Investopedia.com between Aug. 25 and Sept. 14, makes the case that investors require both high-tech and high-touch forms of advice to satisfy their increasingly complex financial needs.
All of the survey respondents were U.S. residents over 21 who have input in their household’s investment decisions.
“The future of financial advice is bionic – a powerful combination of both [robos and human advisors],” David Siegel, CEO of Investopedia, said in a statement. “As investors get more comfortable with automated investing platforms, they’re starting to demand both the low-cost benefits such platforms provide and the irreplaceably customized and high-touch approach of financial advisors.”
While only 7% of the survey respondents are currently using some sort of robo-advisor, 58% said they were familiar with automated investing platforms and 18% had searched for an automated platform.
And, for those respondents who are using a robo-advisor, satisfaction is fairly high with 73% indicating they are “satisfied” or “very satisfied” with the primary automated investing platform they are using. These investors cite performance (75%), transparency in fees (74%), accessibility on multiple platforms (65%) and investment options (64%) as the aspects automated advice that make them most satisfied.
However, 40% of survey respondents said they would be either uncomfortable or very uncomfortable with using a robo-advice platform during cases of extreme market volatility.
