What You Need to Know
- A fifth of investors surveyed believe that technology will fully manage their investment portfolio within a year.
- Most investors agreed that there is a time for technology and a time for personal interaction.
- Seventy-one percent of investors surveyed said technology is better for simple financial tasks, such as tracking expenses, but not for complex ones.
Four in 10 investors report that they used technology and digital tools to manage their finances more during the pandemic than ever before, and a third say they will continue to adopt technology at a faster rate going forward, Charles Schwab reported this week.
A fifth of investors believe that technology will fully manage their investment portfolio within a year, yet both new and seasoned investors say they will first turn to a financial advisor in times of uncertainty.
“The pandemic spurred rapid adoption of digital investing tools and technology, creating a unique opportunity for financial services companies to innovate how we serve customers and continue to build trust,” Neesha Hathi, Schwab’s chief digital officer, said in a statement.
“The past year has reinforced that it’s not a question of meeting investors either digitally or in person — but combining the best of both to engage investors where and when they are looking to take action to manage their finances.”
Logica Research conducted the online survey in June among a national sample of 1,000 U.S. investors 18 to 75 and a sample augment of 200 investors who began investing in 2020 or 2021, as well as a sample augment of 200 affluent investors.
Tech First, but With Human Touch
Investors fall into three evenly divided groups when it comes to interacting with a financial institution, according to the survey. Thirty-seven percent prefer mostly using technology, 32% prefer mostly talking to a person and 31% prefer a combination of technology and in-person interactions on an ongoing basis.
And although 54% of investors said it is possible to have a personal relationship with a financial company by interacting only through technology, most also agreed that there is a time for technology and a time for personal interaction.
Seventy-one percent of investors surveyed said technology is better for simple, more transactional financial tasks, such as tracking expenses, but not for complex ones. A similar percentage said technology helps them reach their financial goals.
Seventy percent maintained that technology reduces the amount of time they spend managing their finances, and 65% said it gives them peace of mind concerning their finances.