Clients want humans… as long as they’re above a certain age at least.
A recent study from Allianz has revealed that clients who are above the Millennial generation – such as Baby Boomer and Generation X investors – aren’t so keen on getting advice from robotic platforms. Indeed nearly seven out of 10 said they “don’t really trust online advice” with a personal connection proving preferable.
This is despite the fact that they have adapted to the technology overall: 57 per cent are using the internet outside work for one-three hours each day, with 40 per cent even visiting financial websites.
Generation X, which refers to people currently aged 35-48 and Baby Boomers, which is a reference to those aged 49-67, believe that humans are better at offering advice in areas such as the management of long-term goals and general financial planning. In addition, humans are able to make clients understand their own financial health by assessing retirement, savings and account spending. It seems that the value of receiving personalized advice from a real person is still highly valued.
However, not all of the results of the survey were positive for human advisors.
The internet appears to be taking its effect on the perceived value that an advisor can offer. According to the report, 42 per cent of investors believe there is nothing financial advisors can advise them on that they can’t find for themselves online. Meanwhile, 76 per cent said that they are being sold to so often online that they no longer trust financial advice.
As for the advisors themselves, it seems they are not so keen to incorporate robos into their offerings. Just seven per cent believe that bringing robo technology into their practice is a priority, with many still waiting to see if they are just a fad.