Americans have not outgrown human advisors, according to a study by Million Dollar Round Table. Rather, the study finds that their preference lies in combining the personal touch of an advisor alongside cutting-edge technology.
The study by MDRT, an independent association of more than 66,000 life insurance and financial services professionals from more than 500 companies in 72 nations and territories, explores the fintech revolution and attitudes regarding the use of tech to complement a traditionally human relationship-based industry.
The survey, which was conducted online from Nov. 1-5, 2018, included 2,008 U.S. adults ages 18 and older, among whom 771 currently work with a human financial advisor.
According to the study, the majority of Americans (88%) want tech to complement, not replace, human financial advisors. In fact, 85% said they would rather work with a human financial advisor than a robo-advisor.
The study found that, while 83% would trust a human financial advisor to effectively manage their financial plan, only 36% would trust the job to a robo-advisor.
In fact, according to the study, only 5% of Americans believe financial planning should be managed entirely by technology-based tools.
“Though robo-advisors have become more prevalent in the financial advisor industry, it’s vital to note that the majority of clients still desire human interaction and communication,” Ross Vanderwolf, the 2019 MDRT president, said in a statement. “This means that we, as financial professionals, should make every effort to cultivate client relationships in order to further promote the benefits of working with a human advisor.”