Messaging about the benefits of robo-advisors is lost on most advisors, with a new poll revealing the depth of their mistrust.
The biggest piece of data concerning advisors: 73 per cent of those surveyed feel the low cost of robo-advisors will ultimately threaten their business. Even more damning is that 82 per cent of advisors feel digital investment services that also offer human financial advisors
such as WealthBar are the biggest threat of all.
That new study suggests that although opportunities exist for advisors to benefit from robo-advisors, most are still very leery of them.
“Though most advisors are familiar with digital advice, a relatively small percentage of advisors are currently using this technology,” said Ben Harrison, head of business development and relationship management at Pershing LLC. “The biggest opportunity we see for transformation is for advisors to automate low-value tasks, expand their reach and profitability.”
Pershing sponsored “The Third Annual Study of Advisor Success: Confidence and Concern in the New Digital Age," an April survey conducted by Harris Interactive that interviewed 320 advisors of all stripes about their thoughts on robo-advisors and other transformational technology coming down the pike.
Interestingly, despite advisor concerns about robo-advisors, a previous study by Pershing conducted earlier in 2015 revealed that 71 per cent of them found the technology extremely appealing.
In addition, advisors remain an extremely confident bunch.
In this latest survey 91 per cent of those surveyed believe human advisors will always play an important part in providing clients with financial advice. Furthermore, 73 per cent of advisors are satisfied with their careers despite the constant threats – real and perceived – to their future livelihood.
Fintech continues to be one of the fastest growing areas in financial services and robo-advisors are a big part of that.
One thing’s for certain.
As digital investment services evolve it’s likely that surveys such as this one will continue to reveal serious disagreements among advisors.