What Millennials Really Think About Human Advisors
Despite the image of millennials permanently attached to their wireless devices they still favor the human touch when it comes to financial advice, according to a recent poll conducted by LendEDU.
Millennials are almost twice as likely to work with a human advisor than a robo: 46.41% of millennials currently have a financial advisor and just 24.3% use a robo-advisor, according to a poll of 502 millennials LendEDU says are actively saving for retirement.
Turns out millennials don’t put that much stock in technology: 68.92% think human advisors can get them better returns on their investment and 51.59% believe robos are more likely than human advisors to make mistakes managing their money, according to the survey. And a whopping 62.25% of millennials think robos are more likely to lose their money than human advisors, the survey found.
Yet a lack of understanding of what robos do may play a role in their attitudes to the technology: among millennials who have not used a robo-advisor, 61.58% say they’ve never heard of the concept.
Nonetheless, advisors who think they’ve won the battle against the machines may want to think again: 68% of emerging wealthy and high net worth investors now favor a hybrid model to traditional advice, according to a recent Accenture study cited in a white paper by Advicent.
But advisors should look at robos not as competition but as complementary services, Advicent says. Technology provides the clients of traditional advisors more efficient access to their accounts while letting advisors spend more time with clients and scale services, according to the white paper.
Human advisors will still need to ensure their clients see the added value they bring to financial planning over robos, according to Advicent.